Financial instruments do not include:
A)Contracts that call for receipts or payment of cash.
B)Equity investment in another business.
C)Cash.
D)Tangible assets.

Question

Quizplus · Accepted Answer

Financial instruments are contracts that represent a claim to a financial asset, whereas tangible assets are physical assets such as property, plant, and equipment. Therefore, option D is not considered a financial instrument. Options A, B, and C all involve the receipt or payment of cash and are considered financial instruments.

Financial Instruments Do Not Include