A contract with a residual interest in the assets of an entity after deducting all of its liabilities is referred to as a (an):
A) equity instrument.
B) derivative instrument.
C) primary instrument.
D) secondary instrument.

Question

Quizplus · Accepted Answer

A contract with a residual interest in the assets of an entity after deducting all of its liabilities is a characteristic of an equity instrument.

A Contract with a Residual Interest in the Assets of an Entity