Which Statement Best Explains the Accounting for Compound Instruments

question 16

Multiple Choice

Which statement best explains the accounting for compound instruments?

• A)Once separated,each component is accounted for at fair value through profit or loss.
• B)Once separated,each component is accounted for in accordance with its substance.
• C)Once separated,each component is accounted for amortized cost.
• D)Once separated,each component is accounted for at historical cost.

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Definitions:

Science

A systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe.

World Health Organization

A specialized agency of the United Nations responsible for international public health.

Center for Disease and Control

Incorrectly named; intended is likely the Centers for Disease Control and Prevention (CDC), a national public health institute in the United States.

Member Nation

A country that is part of a larger political or economic organization or agreement.