Which is not an important objective for financial instruments?
A) existence
B) cutoff
C) accuracy
D) realizable value

Question

Quizplus · Accepted Answer

Cutoff is not an objective for financial instruments. The other options, existence, accuracy, and realizable value, are all important objectives for financial instruments. Existence refers to ensuring that the financial instruments actually exist and are recorded correctly in the financial statements. Accuracy refers to ensuring that the financial instruments are recorded at their appropriate values, while realizable value is the ability to sell the financial instruments for cash or receive payments in the future.

Which Is Not an Important Objective for Financial Instruments