Start learning →

What is a financial instrument?

AA contract creating asset and liability
BA physical asset held for resale
CA tax payable to the government
DAn intangible right from a merger
Answer & Solution
Correct answer: A. A contract creating asset and liability
A financial instrument is a two-sided contract: it is a financial asset for one party and a financial liability or equity instrument for the other.
Practise this question with Quill — CA Final →

Keep practising Ind AS 32 Financial Instruments: Presentation

Browse all Ind AS 32 Financial Instruments: Presentation questions for CA Final, or explore more Financialreporting topics.

Start a Ind AS 32 Financial Instruments: Presentation lesson →
Related questions
Pro rata rights at a fixed price in any currency are?Which are 'entities' under Ind AS 32?Must a financial instrument contract be written?On reclassifying equity to liability, difference goes to?Puttable equity must sit in which class?Puttable equity must entitle holders to?A master netting arrangement provides?Is a sinking fund offset against the debentures?