Financial Instruments Do Not Include

question 22

Multiple Choice

Financial instruments do not include:

• A)Contracts that call for receipts or payment of cash.
• B)Equity investment in another business.
• C)Cash.
• D)Tangible assets.

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Definitions:

Freight Costs

Costs a company bears to move merchandise from one location to another.

Purchased Merchandise

Goods acquired by a business for the purpose of reselling them to final consumers.

Discount Period

A set time frame during which a discount is offered on payments made for goods or services.

Accounts Receivable

Due payments from customers to a firm for products or services that have been delivered but not settled.