Which of the following are regarded as financial instruments?
I Ordinary shares
II Raw materials inventories
III Property,plant and equipment
IV Deposits held by a financial institution
V Accounts receivable and accounts payable
A)I,II,IV and V only
B)II,III and IV only
C)I,II and V only
D)I,IV and V only

Question

Quizplus · Accepted Answer

Ordinary shares, deposits held by a financial institution, and accounts receivable and accounts payable are considered financial instruments as they represent financial assets or liabilities. Raw materials inventories and property, plant, and equipment are not financial instruments as they are tangible assets.

Which of the Following Are Regarded as Financial Instruments