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WorksheetsStructure of the Lesson: Financial Instruments
Total questions: 65
Worksheet time: 33mins
Which of the following best describes the topic: Introduction to Financial Instruments?
It covers the basic concepts and types of financial instruments used in financial markets.
It explains the process of manufacturing physical goods.
It focuses on the history of world currencies.
It discusses the fundamentals of computer programming.
Classification and measurement of financial instruments is governed by which accounting standard?
IFRS 9
IAS 2
IFRS 15
IAS 16
The criteria for measurement of financial instruments include which of the following?
Classification, initial recognition, subsequent measurement, and derecognition
Only initial recognition and derecognition
Only classification and measurement at fair value
Only measurement at amortized cost
Fair Value in Financial Instruments refers to:
The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The historical cost of an asset or liability as recorded in the books.
The amount paid for an asset at the time of purchase, regardless of current market value.
The value assigned by management based on internal estimates.
Embedded derivatives in financial instruments are best described as:
Components of financial instruments that cause some or all of the cash flows to vary in a way similar to a stand-alone derivative.
Physical assets included within a financial contract.
Separate financial contracts unrelated to the host instrument.
Interest payments on a fixed-rate bond.
What is a financial instrument? Fill in the blank: A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
A financial instrument is any contract that gives rise to a physical asset of one entity and a physical liability of another entity.
A financial instrument is any contract that gives rise to a financial asset of one entity and a tangible asset of another entity.
A financial instrument is any contract that gives rise to a non-financial asset of one entity and a non-financial liability of another entity.
Which of the following are examples of Securities (Valores Mobiliários)?
Shares, bonds, participation titles, warrants
Futures, options, swaps
Commercial paper, treasury bills
Which of the following are examples of Derivative Instruments (Instrumentos Derivados)?
A) Shares, bonds, participation titles
B) Futures, options, swaps, differential contracts
C) Commercial paper, treasury bills
Which of the following are examples of Monetary Instruments (Instrumentos Monetários)?
A) Shares, bonds, participation titles
B) Futures, options, swaps
C) Commercial paper, treasury bills
What is one of the functions mentioned in the slide? Representation of ______/value.
riqueza
dinero
mercancía
trabajo
Which of the following is a function mentioned in the slide?
Origem remota (títulos de crédito)
Financiamento
Cobertura de risco
Especulação
Aptidão de circulação em ______ ou OTC.
mercado
banco
empresa
loja
What is one of the typical purposes mentioned in the slide? Fill in the blank: ______ (faculdade de captação de fundos do público).
Financiamento
Educação
Saúde
Transporte
Which of the following is a typical purpose mentioned in the slide?
Cobertura de risco
Representação de riqueza
Origem remota
Aptidão de circulação
Fill in the blank: ______ is mentioned as a typical purpose in the slide.
Especulação
Administração
Produção
Distribuição
What is an Equity Instrument (Instrumento de Patrimônio)? Fill in the blank: An Equity Instrument is _________.
Any contract that evidences residual participation in the assets of an entity after deducting all liabilities.
A contract that guarantees fixed interest payments regardless of profits.
A document that represents a liability to pay a specific sum at a future date.
A contract that only provides voting rights without any claim on assets.
What are Derivatives (Derivativos)? Fill in the blank: Derivatives are _________.
Transactions carried out between two parties where future payments are defined based on the behavior of the prices of a market asset.
Assets that always have a fixed value regardless of market conditions.
Physical goods exchanged directly between buyers and sellers.
Bank accounts that pay interest based on the stock market.
The characteristics of derivatives are linked to a financial asset.
True
False
Derivatives generate little or no financial outlay.
True
False
The settlement of derivatives occurs at a future date.
True
False
For the category 'Ativos e passivos mensurados ao valor justo por meio do resultado', what is the initial measurement method?
Valor justo com ajuste no resultado
Custo amortizado
Valor de mercado histórico
Valor contábil líquido
For the category 'Investimentos mantidos até o vencimento', what is the initial measurement method?
Custo amortizado utilizando TJE (taxa de juros efectiva)
Valor justo com reconhecimento no resultado
Valor de mercado ajustado pela inflação
Custo histórico sem atualização
For the category 'Empréstimos (concedidos) e recebidos', what is the initial measurement method?
Custo amortizado utilizando TJE (taxa de juros efectiva)
Valor justo através do resultado
Valor de mercado ajustado
Custo histórico sem atualização
For the category 'Activos disponíveis para venda', what is the initial measurement method?
Valor justo com ajuste no patrimônio líquido
Custo histórico sem ajuste
Valor de liquidação imediata
Valor contábil depreciado
For the category 'Passivos não mensurados ao valor justo', what is the initial measurement method?
Custo amortizado utilizando TJE (taxa de juros efectiva)
Valor justo com base no valor de mercado
Custo histórico sem ajuste de juros
Valor presente dos fluxos de caixa futuros sem considerar TJE
Which type of financial assets or liabilities are held for trading according to the classification and measurement rules?
Financial assets or liabilities held for trading are classified as measured at fair value through profit or loss.
Financial assets or liabilities held for trading are classified as measured at amortized cost.
Financial assets or liabilities held for trading are classified as measured at historical cost.
Financial assets or liabilities held for trading are classified as measured at cost less impairment.
What is the purpose of designating financial assets or liabilities at initial recognition at fair value through profit or loss?
To eliminate/reduce inconsistencies in measurement or recognition and to be used as a basis for management and performance evaluation.
To comply with tax regulations for all financial instruments.
To ensure all assets are valued at historical cost.
To avoid the need for impairment testing on all assets.
Financial assets or liabilities acquired or originated for the purpose of sale or repurchase in the short term are classified as measured at fair value through profit or loss.
True
False
Are derivatives (except in the case of a hedge instrument designated by the entity and effective) classified as measured at fair value through profit or loss?
True
False
Interest, monetary correction, exchange rate variation, and changes resulting from fair value evaluation are recognized in profit or loss in the line of financial income or expenses.
True
False
Are transaction costs added to the asset or liability when measured at fair value through profit or loss?
No, transaction costs are not added to the asset or liability.
Yes, transaction costs are always added to the asset or liability.
Transaction costs are deducted from the asset or liability.
Transaction costs are capitalized and amortized over time.
What type of financial assets are held-to-maturity investments? Fill in the blank: Held-to-maturity investments are ...
Non-derivative financial assets with fixed or determinable payments and fixed maturities.
Equity instruments with variable returns and no fixed maturity.
Derivative financial assets with uncertain cash flows.
Non-financial assets such as property or equipment.
The company must have a positive intention and the ability to hold the investment until maturity for it to be classified as held-to-maturity.
True
False
Which of the following are included in held-to-maturity investments?
Post-fixed financial applications
Other redeemable monetary assets
Monetary assets with fixed and determinable payments
All of the above
Which type of financial assets are described as non-derivative with fixed or determinable payments but not quoted in an active market?
Loans (granted) and receivables
Equity instruments
Derivatives
Financial assets at fair value through profit or loss
Which of the following are included as examples of loans (granted) and receivables?
Accounts receivable from customers
Other accounts receivable
Loans receivable
Financial assets with fixed and certain terms not quoted in an active market
All of the above
After initial recognition, loans (granted) and receivables are measured at amortized cost using the effective interest rate method.
True
False
Where are interest, monetary updates, exchange rate variations, and impairment losses recognized when applicable for loans (granted) and receivables?
They are recognized in the income statement when incurred, under financial income or expense line.
They are recognized directly in equity, bypassing the income statement.
They are only recognized at the time of loan settlement, not periodically.
They are recognized as off-balance sheet items and not reported in financial statements.
What type of financial assets are classified as 'Available for Sale'?
Financial assets that do not qualify in the above categories.
Financial assets held for trading purposes only.
Financial assets intended to be held to maturity.
Financial assets classified as cash equivalents.
'Available for Sale' is considered which type of category?
Residual category.
Trading category.
Held to Maturity category.
Loan category.
Usually, which assets should be classified as 'Available for Sale'?
Assets whose holder may not substantially recover their initial investment, for reasons other than credit deterioration, such as investments in shares of other companies for entities that do not trade constantly and do not intend to hold permanently.
Assets that are always intended to be held until maturity, such as government bonds.
Assets that are used in the daily operations of the business, such as machinery and equipment.
Assets that are classified as cash equivalents and are highly liquid.
How are 'Available for Sale' assets measured?
At fair value. Interest, monetary updates, and exchange rate variations, when applicable, are recognized in profit or loss when incurred, and changes in fair value are recognized in equity until the asset is realized.
At historical cost. All changes are recognized directly in profit or loss.
At amortized cost. Only interest income is recognized in profit or loss.
At net realizable value. All changes are recognized in other comprehensive income.
According to the slide on 'Financial liabilities not measured at fair value', what type of financial liabilities do not fit into the fair value category and are not derivatives usually traded before maturity?
Financial liabilities that do not fit into the fair value category and are not derivatives usually traded before maturity.
Financial liabilities that are always measured at fair value and are derivatives traded after maturity.
Financial liabilities that are only measured at cost and are always derivatives.
Financial liabilities that are measured at fair value and are not traded before maturity.
According to the slide on 'Financial liabilities not measured at fair value', for which financial liabilities does the entity decide not to measure at fair value but instead use the amortized cost method?
Those for which the entity decided not to measure at fair value and instead use the amortized cost method.
Those that are always measured at fair value regardless of entity decision.
Those that are classified as equity instruments only.
Those that are measured using the cost model for assets.
According to the slide on 'Financial liabilities not measured at fair value', which of the following are included as examples?
A) Loans and usual financing, suppliers, debentures, debt securities with a set maturity, among others the entity does not intend to settle before maturity
B) Only derivatives
C) Only equity instruments
D) Only cash equivalents
According to the slide on 'Financial liabilities not measured at fair value', how are these liabilities measured and how are interest, monetary update, and exchange variation recognized?
They are measured at amortized cost using the effective interest rate method. Interest, monetary update, and exchange variation, when applicable, are recognized in profit or loss when incurred.
They are measured at historical cost and all related gains and losses are recognized in other comprehensive income.
They are measured at fair value through profit or loss, and all changes are recognized directly in equity.
They are measured at present value and interest, monetary update, and exchange variation are deferred until settlement.
According to the slide '3.3. Criteria for Measurement', what is the measurement method used in limited circumstances when fair value cannot be determined?
Cost
Net Realizable Value
Amortized Value
Market Value
According to the slide '3.3. Criteria for Measurement', which measurement method uses an active or inactive market?
Fair value
Historical cost
Amortized cost
Net realizable value
According to the slide '3.3. Criteria for Measurement', which measurement method uses the effective interest rate method?
Amortized cost
Fair value through profit or loss
Historical cost
Net realizable value
Fill in the blank: Justo Valor (Fair Value) is the amount for which an asset can be exchanged or a liability settled in a transaction under normal market conditions.
the amount for which an asset can be exchanged or a liability settled in a transaction under normal market conditions
the amount for which an asset is always purchased regardless of market conditions
the historical cost of an asset as recorded in the books
the price set by the government for all assets
Fill in the blank: The best evidence of fair value on the initial recognition date in an active market is ___ .
the transaction price (fair value paid or received)
the historical cost of the asset
the estimated future cash flows
the book value as per previous records
Fill in the blank: If price quotations in an active market are not available, the fair value estimate should be based on ___ .
recent market prices, fair value of a similar instrument, discounted cash flow analysis, or pricing models
historical cost only
management's personal opinion
auditor's recommendation
Which of the following is a type of derivative?
Listados (Regular Way Transactions)
OTC (Over the Counter)/Balcão
Possibilidade de “Offsetting”
All of the above
Fill in the blank: OTC stands for _________.
Over the Counter
On the Clock
Order to Cash
Over the Cloud
Which of the following is a possible use of derivatives?
Redução de riscos (hedge)
Especulação
Both A and B
None of the above
Redução de riscos in derivatives is also known as ________.
hedge
arbitrage
speculation
leverage
Speculation is one of the uses of derivatives.
True
False
What is an embedded derivative in a financial instrument?
A separate financial contract
A component of a hybrid instrument that includes a financial derivative and a host contract, causing the combined cash flow to vary similarly to a standalone financial derivative
A type of insurance policy
A standalone financial instrument
Fill in the blank: A hybrid instrument is made up of a ______ and an embedded derivative.
host
bond
option
contract
According to the diagram, which two components combine to form a hybrid instrument?
Host and Embedded Derivative
Host and Insurance
Derivative and Loan
Host and Equity
Which of the following is an example of a principal contract as shown in the diagram?
Opções / Swap
Leasing
Indices Futuros
Indices de Commodities
Which of the following is NOT listed as an embedded derivative in the diagram?
Opções / Swap
Indices Futuros
Prestação de Serviços
Indices de Commodities
Fill in the blank: According to the diagram, 'Opções / Swap' are examples of _________.
Embedded Derivatives (Derivativos Embutidos)
Fixed Income Securities (Títulos de Renda Fixa)
Equity Instruments (Instrumentos de Capital)
Commodities
Which of the following is a type of contract that can contain embedded derivatives, as per the diagram?
Seguros
Indices Futuros
Opções / Swap
Indices de Commodities
'Compra e Venda de Câmbio' is categorized under ________ in the diagram.
Principal Contract (Contrato Principal)
Accessory Contract (Contrato Acessório)
Guarantee Agreement (Acordo de Garantia)
Service Agreement (Contrato de Prestação de Serviços)
