Which Statement Is Correct About Financial Instruments

question 71

Multiple Choice

Which statement is correct about financial instruments?

• A)A contract whose value changes according to a specified variable, requires little or no initial investment and is settled at a future date.
• B)A contract that gives the holder the residual interest in an entity after deducting all of its liabilities.
• C)Any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.
• D)Any contract that entitles the holder to joint interest in an entity after deducting all of its liabilities.

---

Definitions:

Test-Retest Reliability

A measure of the consistency of a psychological test or assessment over time, indicating the stability of scores upon repeated administration.

Performance Measures

Metrics or standards used to assess and quantify the efficiency, productivity, or success of an individual, group, or organization's output.

Effectiveness

The degree to which objectives are achieved and the extent to which targeted problems are solved.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.