Financial instruments in the capital markets generally fall under which category in the balance sheet?

Question

Quizplus · Accepted Answer

Financial instruments in the capital markets are generally long-term liabilities and equity. This is because they represent long-term investments that individuals and firms make in the hope of generating future returns. This includes stocks, bonds, and other securities that are traded on stock exchanges or other markets.  Short-term liabilities and equity are typically associated with day-to-day operations and financing activities, such as accounts payable and short-term debt. Near cash assets are typically short-term financial instruments that can be quickly converted to cash, such as money market instruments or treasury bills.

Financial Instruments in the Capital Markets Generally Fall Under Which