The trial balance of Imotex Ltd. contains the following accounts:
1. Accounts receivable, trade
2. Accounts receivable, related company
3. Accounts receivable, to be exchanged for shares in another company
4. Note receivable, receivable in grams of a precious metal
5. Cash
6. Investment in Royal Bank common shares (long-term investment)
7. Income Taxes receivable
8. Interest rate swap: contract to receive fixed rate (at 8%) and to pay variable rate (current rates are 6%) on debenture debt
9. U.S. dollar cash holdings in a U.S. subsidiary’s bank account
Instructions
For 1 to 9, indicate whether the item is or is not a financial asset. Give an explanation for each of your choices.