All of the following would be regarded as financial instrument, exceptGroup of answer choicesNote payableReceivablesCashEquipment
Question
All of the following would be regarded as financial instrument, exceptGroup of answer choicesNote payableReceivablesCashEquipment
Solution
To determine which of the options is not regarded as a financial instrument, let's analyze each one:
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Note payable: This is a written promise to pay a certain amount of money at a future date. It is a financial liability and thus a financial instrument.
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Receivables: These represent amounts owed to a company by its customers. They are financial assets and therefore financial instruments.
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Cash: This is the most liquid form of financial asset and is definitely a financial instrument.
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Equipment: This refers to physical assets used in the operations of a business. It is not a financial asset or liability, but rather a tangible asset.
Therefore, the correct answer is:
Equipment
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