Q4 Which of the following statements is NOT correct? (i) For an asset to be classified as a financial asset, cash or a right to receive cash or another financial asset should exist (ii) Cash constitutes a financial asset on its own. (iii) Any asset that can be interchanged for cash or cash equivalent should be classified as a financial asset even if there is no contractual right to receive cash or another financial asset. (iv) There is need for there to be a written and signed contract between buyer of the financial asset and the seller. Select one or more: a. (iii) and (iv) only b. (i), (ii), (iii) and (iv) c. (ii) only d. (i), (ii) and (iii) only
Q4 Which of the following statements is NOT correct? (i) For an asset to be classified as a financial asset, cash or a right to receive cash or another financial asset should exist (ii) Cash constitutes a financial asset on its own. (iii) Any asset that can be interchanged for cash or cash equivalent should be classified as a financial asset even if there is no contractual right to receive cash or another financial asset. (iv) There is need for there to be a written and signed contract between buyer of the financial asset and the seller. Select one or more: a. (iii) and (iv) only b. (i), (ii), (iii) and (iv) c. (ii) only d. (i), (ii) and (iii) only
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q4
Which of the following statements is NOT correct?
(i) For an asset to be classified as a financial asset, cash or a right to receive cash or another financial asset should exist
(ii) Cash constitutes a financial asset on its own.
(iii) Any asset that can be interchanged for cash or cash equivalent should be classified as a financial asset even if there is no contractual right to receive cash or another financial asset.
(iv) There is need for there to be a written and signed contract between buyer of the financial asset and the seller.
Select one or more:
a. (iii) and (iv) only
b. (i), (ii), (iii) and (iv)
c. (ii) only
d. (i), (ii) and (iii) only
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