1. A financial instrument is: a. A contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. b. Rights and obligations under a lease contract. c. A contract under which one party accepts significant insurance risk from another party by agreeing to compensate the policy holder if specified uncertain future event adversely affects the policy holder d. rights to payments to reimburse the entity for expenditure that it is required to make to settle a liability that it recognizes as a provision.
