In Accordance with AASB Framework Which of the Following Transaction(s)is/are

question 40

Multiple Choice

In accordance with AASB framework which of the following transaction(s) is/are consistent with a definition of income?

• A)Collection of accounts receivable.
• B)Debt forgiveness.
• C)Issue of share capital.
• D)All of the given answers.
• E)Collection of accounts receivable and debt forgiveness.

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Definitions:

YTM

Yield to Maturity; the total return anticipated on a bond if it is held until it matures, considering all interest payments and the principal repayment.

Interest Rate Risk

The potential for investment values to change due to variations in interest rates, affecting especially bonds and other fixed income investments.

Bond Prices

The amount of money required to purchase a bond, which can fluctuate based on interest rates, credit quality, and other factors.

Duration

A financial metric that calculates the weighted average time until a bond or a portfolio of bonds pays out its cash flows, used to assess interest rate risk.