Which of the following items is classified as a financial asset?
A)Buildings.
B)Loans payable.
C)Trade receivables.
D)Ordinary shares held in a subsidiary.

Question

Quizplus · Accepted Answer

Trade receivables are financial assets because they represent a right to receive cash from the debtor in the future. Buildings are non-financial assets, loans payable are liabilities, and ordinary shares held in a subsidiary are equity investments.

Which of the Following Items Is Classified as a Financial