The disclosure note of Big Products Ltd. showed the following (in millions):

Required:

1. Define financial instrument and financial asset.

2. With respect to cash, explain why the asset is classified as FVTPL. Under what circumstances would the fair value of cash change from the originally recognized value?

3. What is the definition of a cash equivalent?

4. With respect to accounts receivable, explain the difference between the accounting treatment of financial instruments classified as FVTPL and those classified as amortized cost. Why are some elements likely placed in one category versus the other?

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Amortized Cost FVOCI Total Carrying Value FVTPL Total Falr Value Cash $116 $ $116 $116 Cash equivalents 542 542 542 Accounts 165 699 864 864 receivable Notes receivable 210 210 210