Financial assets are derecognised under the following situations except forAnswer :The contractual rights to receive cash flows expires  A financial asset is sold unconditionally for a single fixed cash amountA financial asset is sold with an option to repurchase the financial asset at its fair value at the time of repurchase  Substantial risk and reward of ownership of the financial asset are not transferred

A financial asset is recognised whenAnswer : risks and rewards are transferred  it is probable that future economic benefits will flow to the entity and the cost of the instrument can be measured reliably   control is obtained   the entity becomes a party to a contractual provision of the instrument

A financial liability is derecognised whenAnswer :The obligation in the contract is discharged   The obligation in the contract is cancelled   The obligation in the contract  expires   All of the above

he assets which are convertible into cash or cash equivalents within a year are known as _________.Fixed assetsCurrent assetsTangible assetsNone of the above

Which of the following is a financial asset?Answer : Machinery  Intangible assets   Loan receivable  Prepayments

An accounting transaction simultaneously decreases assets and equity. This transaction is explained by which of the following scenarios:Group of answer choicesAn asset was purchased with cash.Accounts Payable owed were paid with cash.An expense was incurred on credit.The owner withdrew cash from the business.Next