BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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ACCOUNTS RECEIVABLE
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TAXES PAYABLE
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INVESTMENT IN EQUITY SECURITIES
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BONDS PAYABLE
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Detailed explanation-1: -Consequently, assets or liabilities that are not contractual are not financial instruments. For example, taxes and levies imposed by governments are not financial liabilities because they are not contractual, they are dealt with by IAS 12 and IFRIC 21 (IAS 32. AG12).
Detailed explanation-2: -Which is not classified as a financial instrument? It is any contract that evidences residual interest in the assets of an entity after deducting all of the liabilities.
Detailed explanation-3: -A nonfinancial asset is an asset that derives its value from its physical traits. Examples include real estate and vehicles. It also includes all intellectual property, such as patents and trademarks.
Detailed explanation-4: -"Income tax payable” refers specifically to an amount reported on financial statements: a liability reported in the current liabilities section of a company’s balance sheet that indicates the amount that an organization expects to pay in income taxes within 12 months.