Financial Instruments and Contracts Quiz
9 Questions
32 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What are financial instruments?

  • Physical goods exchanged between parties
  • Insurance policies between parties
  • Legal documents between parties
  • Monetary contracts between parties (correct)

What are the categories of financial instruments?

  • Cash and derivative
  • Equity-based and debt-based (correct)
  • Foreign exchange and debt-based
  • Short-term and long-term

What is the definition of a financial instrument according to IAS 32 and 39?

  • Any monetary transaction between parties
  • Any ownership interest in an entity
  • Any contractual right to receive or deliver goods
  • Any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity (correct)

What are the types of financial instruments?

<p>Cash and derivative (C)</p> Signup and view all the answers

What are examples of debt-based financial instruments?

<p>Bonds and loans (C)</p> Signup and view all the answers

What are examples of equity-based financial instruments?

<p>Shares and stocks (B)</p> Signup and view all the answers

What is the difference between short-term and long-term debt-based financial instruments?

<p>The length of time until the instrument matures (A)</p> Signup and view all the answers

What category do foreign exchange instruments and transactions belong to?

<p>Neither debt- nor equity-based (D)</p> Signup and view all the answers

How is the gain or loss on a financial instrument measured?

<p>The difference between the fair value of the financial instrument at the end of the reporting period and the fair value at the beginning of the reporting period (B)</p> Signup and view all the answers

Flashcards

Financial Instruments

Monetary contracts between parties.

Categories of Financial Instruments

Equity-based and debt-based categories exist.

IAS 32 and 39 Definition

Contracts that create financial assets or liabilities between entities.

Types of Financial Instruments

Include cash and derivatives.

Signup and view all the flashcards

Debt-based Instruments Examples

Include bonds and loans.

Signup and view all the flashcards

Equity-based Instruments Examples

Include shares and stocks.

Signup and view all the flashcards

Short-term vs Long-term Debt

Difference is the time until maturity.

Signup and view all the flashcards

Foreign Exchange Instruments

Do not fit into debt or equity categories.

Signup and view all the flashcards

Measuring Gains or Losses

Difference in fair value over reporting periods.

Signup and view all the flashcards

Study Notes

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Description

Test your knowledge on financial instruments and contracts with this quiz! From cash and debt to derivatives and equity, this quiz covers the basics of financial instruments. Whether you're a beginner or an expert, this quiz will challenge your understanding of monetary contracts between parties on an international level. Get ready to learn and test your knowledge!

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser