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Adaeze Nwobu

Study questions for chapter twenty

20.1 An investment can be defined as setting aside money into a business, short-term deposit, or long-term project with the expectation of ……..


20.2 Voting rights accompany the …………….. of ordinary shares.


20.3 Based on IAS 32, financial instruments are ……………. that result into a financial asset of one entity and a financial liability or equity instrument of another entity.


20.4 A ………………. can be a liability or equity instrument. It can also be a financial asset.


20.5 IFRS 9 guides the ………………. criteria for financial assets and financial liabilities.


20.6 IAS 32 guides the …………….. of financial instruments in the financial statements of the issuing entity.


20.7 IFRS 7 stipulates the ………….. relating to financial instruments.


20.8 A financial asset is a …………….. but liquid asset whose value is derived from a contractual right or ownership claim.


20.9 When a reporting entity enters into a contract that will result in the ownership of another entity’s ordinary shares, the reporting entity has acquired a ………….


20.10 A financial liability is an obligation resulting from a contract to ………….. other financial assets or cash to another entity.

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