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Vika [28.1K]
4 years ago
5

True or False? Financial instruments can be grouped by time to maturity (money vs. capital) or type of obligation (stock, bond,

derivative).
Business
1 answer:
blondinia [14]4 years ago
6 0

Answer:

True

Explanation:

Financial Instruments are agreements pertaining to the exchange of money between parties. The financial instruments could be in the form of cash or the right bound by contractual laws to receive or deliver items with monetary value. Shares, bonds, loans, and derivatives like futures and forwards are other examples of financial instruments. These financial derivates are securities whose prices are hinged on underlying assets like bonds, stocks, commodities, and currencies.  Cash instruments, on the other hand, have their prices determined mainly by the market fluctuations.

Classification of financial instruments could be based on the asset or debt classes. The debt classification could also be broken down as being long or short term. So, the grouping by time to maturity (money vs. capital) or type of obligation (stock, bond, derivative) is a system of classifying financial instruments.

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Suppose you deposit $2,500 at the end of year 1, nothing at the end of year 2, $750 at the end of year 3, and $1,300 at the end
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4 years ago
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8 0
3 years ago
Responsibility for the financial statements and other information found in the annual report lies with
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5 0
3 years ago
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Elza [17]

Answer:

Amount of underapplied or overapplied overhead cost for the year

$97000 - Underapplied

Schedule of cost of goods manufactured for the year

Direct Material                                3885000

Direct Labor                                      60000

Overheads                                       376000

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Cost of Goods Manufactured         4021000

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8 0
3 years ago
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