Test: CPA Financial Accounting and Reporting (FAR)

1.

A derivative financial instrument is best described as:

A contract that has its settlement value tied to an underlying notional amount

A contract that conveys to a second entity a right to receive cash from a first entity

Evidence of an ownership interest in an entity such as shares of common stock

A contract that conveys to a second entity a right to future collections on A/R from a first entity

1/5 questions

0%
Learning Tools by Varsity Tutors