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:

Aviation

The design, development, production, operation, and use of aircraft, especially heavier-than-air aircraft, encompassing both commercial and military aspects.

Spingarn Medal

An award given annually by the NAACP since 1914 to African Americans of distinguished achievement.

NAACP

The National Association for the Advancement of Colored People, a civil rights organization established in 1909 to combat prejudice, lynching, and to promote racial justice and equality.

Jim Crow Military

Refers to the racial segregation policies that were enforced within the U.S. armed forces, paralleling the Jim Crow laws in civilian life.