Which of the following statements is/are not false? Statement 1: Bank Drafts are commitments by banking institutions to advance funds on demand by the party to whom the drafts was directed. Statement 2: Financial Assets is a contractual obligation to deliver cash or another financial asset to another entity. Statement 3: Examples of equity instruments are ordinary shares, preference shares, and warrants. Statement 4: Derivatives derive their value on contractually required cash flows from some other security or index and is not considered as financial instrument.
Which of the following statements is/are not false? Statement 1: Bank Drafts are commitments by banking institutions to advance funds on demand by the party to whom the drafts was directed. Statement 2: Financial Assets is a contractual obligation to deliver cash or another financial asset to another entity. Statement 3: Examples of equity instruments are ordinary shares, preference shares, and warrants. Statement 4: Derivatives derive their value on contractually required cash flows from some other security or index and is not considered as financial instrument.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments
Section: Chapter Questions
Problem 33RQSC
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26.Which of the following statements is/are not false?
Statement 1: Bank Drafts are commitments by banking institutions to advance funds on demand by the party to whom the drafts was directed.
Statement 2: Financial Assets is a contractual obligation to deliver cash or another financial asset to another entity.
Statement 3: Examples of equity instruments are ordinaryshares, preference shares, and warrants.
Statement 4: Derivatives derive their value on contractually required cash flows from some other security or index and is not considered as financial instrument.
Statement 1: Bank Drafts are commitments by banking institutions to advance funds on demand by the party to whom the drafts was directed.
Statement 2: Financial Assets is a contractual obligation to deliver cash or another financial asset to another entity.
Statement 3: Examples of equity instruments are ordinary
Statement 4: Derivatives derive their value on contractually required cash flows from some other security or index and is not considered as financial instrument.
a. Statement 1 and Statement 2
b. Statement 2 and Statement 3
c. Statement 1 and Statement 3
d. Statement 2 and Statement 4
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