Question 1
Which is
not an important objective for financial instruments?
◦ existence
◦ cutoff
◦ accuracy
◦ realizable value
Question 2
Which of the following is
not a correct statement regarding business risk and financial instruments?
◦ Business risks associated with financial instruments will vary depending of the aggressiveness of a company's investing activity.
◦ Business risk will be higher for companies investing in less liquid securities.
◦ Financial services firms are exposed to very little risk with their financial instruments.
◦ Business risk for a company will be higher when investments represent a greater proportion of total assets.