Which Statement Is Correct About Non-Strategic Financial Assets

question 3

Multiple Choice

Which statement is correct about non-strategic financial assets ?

• A)ASPE refers to trading intentions when categorizing these investments.
• B)IFRS classifies these investments in accordance with trading intentions.
• C)IFRS classifies these investments in accordance with their nature.
• D)The accounting is the same under ASPE and IFRS for these investments.

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Definitions:

Capital Intensity Ratio

A metric used to determine the amount of assets required to generate a dollar of revenue; higher ratios indicate more assets are needed.

Accounts Payable

Financial obligations or debts owed by a company to its creditors or suppliers for goods and services received.

Net Income

Refers to the total profit of a company after all expenses and taxes have been subtracted from revenue.

Sales Decrease

A reduction in the amount of products or services sold by a business over a given period.