Under IAS 32, Which of the Following Is a Financial

question 16

Multiple Choice

Under IAS 32, which of the following is a financial liability?

• A) A payable
• B) A bank loan
• C) An intercompany loan payable
• D) All of the above

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Definitions:

Effective Annual Rate

The interest rate on an investment or loan that is adjusted for compounding over a specified period, showing the true annual return.

Semi-Annually Compounded

A financial term where interest is added to the principal amount of an investment or loan twice a year, resulting in compound growth.

Semi-Annually Compounded

Interest or finance charges are applied to the principal sum twice a year, causing the investment or loan to grow at a faster rate than simple annual compounding.

RSP

Registered Savings Plan, a financial account in Canada designated for holding savings and investment assets, with special tax benefits for retirement savings.