Financial Instruments

Question 1

What are Financial Instruments

Answer 1

*Cash, *Evidence of ownership interest in an entity (stock), *Contracts that result in an exchange of cash or ownership interest in an entity, *Derivatives

Question 2

Examples of Financial Liabilities

Answer 2

*A/P, *Notes & Bonds Payable

Question 3

Examples of Financial Assets

Answer 3

*Cash & Cash Equivalents, *A/R, *Investments in debt & equity securities

Question 4

Required Disclosures for Financial Instruments

Answer 4

(1) Fair Value, (2) Concentration of Credit Risk, (3)Market Risk, (4)Foreign Currency Risk, (5) Interest Rate Risk, (6)Commodity Price Risk, Class Disclosures