CA Final financialinstruments — practice questions
15 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Final financialinstruments in the app →Under Ind AS 32, a "financial instrument" is defined as:Which of the following is NOT a financial asset under Ind AS 32?Prepaid insurance is NOT a financial asset because:Z Ltd. takes a security deposit of ₹10,000 from each dealer, refundable with 8% p.a. interest only when the deA Ltd. issues an irredeemable bond of face value ₹1,000 carrying perpetual 8% annual interest with no right ofWhich of the following gives rise to a FINANCIAL LIABILITY for the issuing entity under Ind AS 32?An entity enters a contract to deliver a VARIABLE number of its own equity shares in exchange for a fixed amouX Ltd. issues irredeemable preference shares at face value ₹10 plus premium ₹90, carrying 8% dividend payable Under Ind AS, a financial guarantee contract is:A Ltd. enters a forward contract to repurchase a fixed number of its own equity shares for a fixed amount of cY Ltd. issues a foreign-currency convertible bond. Variability of the conversion ratio that arises SOLELY fromA puttable financial instrument — one that the holder can require the issuer to redeem for cash — is classifieA Ltd. holds a contractual right to exchange a financial asset for another financial asset under conditions thB Ltd. issues 10% cumulative non-redeemable preference shares. The cumulative dividend cannot be deferred indeA Ltd. defaults on an INR 10 lakh bank loan. The bank agrees to a one-time settlement of INR 13 lakh, against