The Classification of a Financial Instrument on the Statement of Financial

question 5

Multiple Choice

The classification of a financial instrument on the Statement of Financial Position of an entity is governed by the principle of:

• A) legal form;
• B) net present value;
• C) substance over form;
• D) forfeiture.

---

Definitions:

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a widely used handbook for diagnosing mental disorders.

Hair-Pulling Disorder

also known as trichotillomania, a mental health disorder characterized by an irresistible urge to pull out one’s hair, leading to noticeable hair loss.

Skin-Picking Disorder

A disorder characterized by recurrent picking at scabs or places on the skin, creating significant lesions that often become infected and cause scars.

Hoarding

A compulsive disorder characterized by the inability to throw away unneeded possessions (such as trash).