Which of the Following Categories of Financial Instruments Is NOT

question 14

Multiple Choice

Which of the following categories of financial instruments is NOT subsequently measured at amortised cost?

• A) Held-to-maturity investments
• B) Loans and receivables
• C) Other financial liabilities
• D) Available-for-sale financial assets

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Definitions:

Indirect Method

A method for preparing cash flow statements where net income is adjusted for changes in balance sheet items to compute cash from operating activities.

Operating Activities

Transactions related to the primary operations of a business, such as sales revenue and expenses, that affect the cash flow.

Current Assets

Assets that a company expects to convert to cash, sell, or consume within one year or its operating cycle, whichever is longer.

Fixed Assets

Long-term tangible assets used in a company's operations that are not expected to be converted into cash within a year.