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All of the following are financial instruments except; a) bank deposits b) stocks c) tax liability d) account receivable?

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Question added by Shaikh Muhammad Yousuf , Manager Accounts , Al Wahdania Group of Companies
Date Posted: 2016/02/06
Frank Mwansa
by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

B. Stocks. a financial instrument is any contract that give rise to both a financial asset of one enterprise and financial liability or equity instrument of another enterprise.

Muhammad Mujtaba Shafique
by Muhammad Mujtaba Shafique , RJ , Dream Fm106

tax liability is the correct answer

Deleted user
by Deleted user

c) tax liability is not a financial instrument is never discounted, it is the net liability.  The interest or any penalty by statue will be accounted for in the profit and loss under "non tax deductible expenses".

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