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FINANCIAL INSTRUMENTS

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

The following are financial instruments..

a)

Equity

b)

Financial Liability

c)

Property, plant and equipment

d)

Financial Assets

2.

The following are examples of equity except

a)

Ordinary share capital

b)

Irredeemable preference shares

c)

Equity shares

d)

Convertible loan stock

3.

The following are examples of financial assets except

a)

Trade receivables

b)

Investment in bonds

c)

Investment in equity

d)

Inventory

4.

The following are examples of financial liabilities

a)

Trade payables

b)

Issue of bonds

c)

Issue of loan stock

d)

cash

5.

The following standards governs the definition of financial instruments

a)

IFRS 9

b)

IFRS 7

c)

IAS 32

d)

IAS 39

6.

In the year 2011, IAS 39 was replaced by

a)

IFRS 7

b)

IFRS 3

c)

IFRS 5

d)

IFRS 9

7.

IFRS 9 governs the recognition and measurement rules of financial instruments.

a)

false

b)

true

8.

Equity will not subject to subsequent measurement by the entities , as it will be observed by shareholders.

a)

True

b)

False

9.

Transaction cost incurred in the process of issuing equity should be debited to P/L as expenses.

a)

False

b)

true

10.

Generally for financial liability, the amount charged as finance costs in P/L should be based on

a)

Coupon rate

b)

EIR

c)

Cost of capital

d)

General borrowing rate