The Classification of a Financial Instrument on the Statement of Financial

question 18

Multiple Choice

The classification of a financial instrument on the statement of financial position of an entity is governed by the principle of:

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

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Definitions:

Happiness

Happiness is a state of well-being characterized by emotions ranging from contentment to intense joy.

Congruent

Being in harmony or agreement; when things align or match in a consistent way.

Psychology Career

A professional path that involves studying mental functions and behaviors, and often includes roles such as research, counseling, and clinical practice.

Thorndike

An American psychologist who developed the law of effect, which states that behaviors followed by pleasing consequences tend to be repeated, while those followed by unpleasant consequences are less likely to be repeated.