12A - 4th Quarter Quiz 3

What is an asset?

• An item of property owned by a person or company

• An item owned by a business that lasts for several years.

Which of the following reasons is not a purpose of investment

• Accretion of wealth

• ownership control

• meeting business requirements

• Payment of loans

The following are financial assets except,

• Non-trading equity securities

• investment in subsidiary

• investment in joint venture

• investment property

Generally, investments are classified in the balance sheet as

• Current asset

• Non-current asset

• either current asset or non-current assets

• none of the above

Financial Asset is any asset that is

• Cash

• A contractual right to exchange financial instrument with another entity under conditions that are potentially unfavorable

• both choices are true

• none of the above

Financial Assets are fair value through profit or loss may classify as

• equity securities and debt securities

• equity securities only

• debt securities only

• none of the above

The following financial assets shall be measured at "fair value through profit or loss" except

• Trading securities

• Investment in quoted equity instruments

• Financial assets that are irrevocably designated as Fair value through profit or loss

• Debt Investment measured at fair value through profit or loss "bu default" in accordance with PFRS 9

• all of the above are measured at fair value through profit or loss

A financial security that generally has a longer

term than a bill, but a shorter term than a

bond.

• Notes

• Bills

• Stocks

• Bonds

A contract between an insured and an insurer who

promises to pay a designated beneficiary a sum of

money (the "benefits") in exchange for a premium,

upon the death of the insured person.

• Pre need Plan

• Life Insurance Plans

• Mortgage Loans

• Prepaid Insurance

Helen has accumulated money from her daily allowance. She is looking for the best way to invest her money. She learned that Peter was in need of money for the expansion of his business. In this scenario, Helen is the ______.

• User of Funds

• Sources of Funds