American Bankers Association Exam CTFA Topic 9 Question 76 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 76
Topic #: 9

What is made on an instrument-by-instrument basis, generally when an instrument is initially recognized in the financial statements?

AElection

BDisclosure

CEligibility

DDiscount

Show Suggested Answer

Suggested Answer: A

by Yuonne at Sep 19, 2024, 09:44 AM

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Annita

3 months ago

I'm feeling a bit 'discounted' by these answer choices. Where's the 'extra credit' option when you need it?

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Francesco

2 months ago

D) Discount

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Laticia

2 months ago

C) Eligibility

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Rolande

3 months ago

B) Disclosure

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William

3 months ago

A) Election

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Tandra

3 months ago

Hmm, this is a tough one. I'm going to go with my gut and say A) Election. It just makes the most sense to me.

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Roselle

3 months ago

C) Eligibility? Really? That's gotta be a trick answer. Who would choose that?

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Denny

3 months ago

I'm going with B) Disclosure. The entity has to disclose information about the financial instrument in the financial statements.

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Novella

3 months ago

It's important for transparency in the financial statements.

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Amber

3 months ago

Yes, the entity needs to provide information about the financial instrument.

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Lyda

3 months ago

I agree, B) Disclosure is the correct answer.

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Dalene

3 months ago

D) Discount seems like a reasonable answer too. Entities often apply discounts when initially recognizing financial instruments.

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Ressie

3 months ago

C) Eligibility

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Glory

3 months ago

B) Disclosure

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Bette

3 months ago

A) Election

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Lindsay

4 months ago

I'm not sure, but I think it could also be B) Disclosure, as it involves revealing information about the instrument.

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Marquetta

4 months ago

I agree with Leonida, because election is made on an instrument-by-instrument basis.

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Quinn

4 months ago

I think the correct answer is A) Election. It's the choice made by the entity when initially recognizing a financial instrument.

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Shenika

4 months ago

Yes, it's the choice made by the entity when initially recognizing a financial instrument.

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Eugene

4 months ago

I agree, the correct answer is A) Election.

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Leonida

4 months ago

I think the answer is A) Election.

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