An Entity Must Recognise a Financial Asset or a Financial

question 17

Multiple Choice

An entity must recognise a financial asset or a financial liability when it becomes subject to the contractual provisions of the instrument.Which of the following are NOT recognised?

• A)Trade debtors.
• B)Forward contracts at commitment date.
• C)Planned future transactions.
• D)Option contracts when the holder becomes a party to the contract.

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Definitions:

Blood Clotting

The process by which blood cells and substances combine to form a clot to prevent excessive bleeding.

Pharmacologic Activity

Represents the specific actions or effects of a drug or substance on the body, including therapeutic and adverse effects.

Amoxicillin

A type of penicillin antibiotic used to treat a wide variety of bacterial infections, including pneumonia, tonsillitis, and bronchitis.

Antibiotic

Drugs used to fight bacterial infections in humans and animals by killing bacteria or inhibiting their growth.