Below are examples of financial liability, except:

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

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

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

Below are characteristics of bonds, except:

Bond indenture is:

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

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

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

It is a type of bond that mature in multiple dates.

It is a type of bond that do not pay periodic interest, but sell in a deep discount.

Which of the following type of dividends are recognized as “dividend revenue”?

It occurs when an investee calls an issued shares and replaces them with new shares.

Below are examples of other long-term investments, except:

It refers to the money set aside for the repayment of a long-term obligation.

It represents the amount of cash to be received from the insurance company in case the life insurance is canceled before the insured key employee dies.

Which of the following is/are the purpose of derivatives?

It is a financial instrument or other contract that derives its value from the changes in value of some other underlying asset or other instrument.

All derivatives are measured at:

It is an agreement between two parties to exchange a specified amount of a commodity, security, or foreign currency at a specified date in the future at a pre-agreed price.

It is a contract in which two parties agree to exchange payments in the future based on the movement of some agreed-upon price or rate.

It is a contract that requires payment based on climatic, geological or other physical variables.

Below are examples of financial asset, except:

Bond will most likely result to a premium if: