ACC3 Intacc1a QUIZ

Any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another equity.

• Financial asset

• Financial liability

• Financial instrument

• Financial position

Below are examples of financial liability, except:

• Lease liabilities

• Security deposits

• Deferred tax payable

• Accounts payable

Evidences a residual interest in the net assets of an entity. Example: shares of stock

• Equity instrument

• Debt instrument

• Equity securities

• Debt securities

Debt instruments that are classifiable as investments. Example: investment in bonds

• Equity instrument

• Debt instrument

• Equity securities

• Debt securities

If business model is held to collect and sell and cash flow characteristic is SPPI, it is:

• Classified as debt instrument using FVOCI

• Classified as debt instrument and amortized

• Classified as equity instrument using FVPL

• Classified as equity instrument and amortized

Below are characteristics of bonds, except:

• short-term debt similar to loans

• long-term debt similar to loans (non-current asset)

• usually offered to public and sold to many investors.

• issued by government or corporate

Bond indenture is:

• Contains restrictive covenants intended to prevent the issuer from taking actions contrary to the interest of the bondholders

• Contractual arrangement between the issuer and the bondholders

• A trustee, often a bank, is appointed to ensure compliance

• All of the choice

It is a contractual right to exchange financial instrument with another entity under conditions that are potentially favorable

• Financial liability

• Financial instrument

• Financial asset

• Financial position

Contract that will or may be settled in the entity’s own equity instruments and not classified as the entity’s own equity instrument.

• Financial instrument

• Financial position

• Financial asset

• Financial liability

It is a type of bond that mature in a single date.

• Serial bonds

• Coupon bonds

• Term bonds

• Zero-coupon bonds