How Are Derivative Contracts Generally Accounted For

question 56

Multiple Choice

How are derivative contracts generally accounted for?

• A)Fair value.
• B)Fair value through profit or loss.
• C)Amortized cost.
• D)Historical cost.

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Definitions:

Ova

The female reproductive cells or eggs in animals and humans, which when fertilized by sperm, can develop into a new organism.

Embryo

The early stage of development in many multicellular organisms, in humans it refers to the phase of development from conception until the eighth week of gestation.

Lungs

Organs in the respiratory system responsible for gas exchange, taking in oxygen and expelling carbon dioxide from the bloodstream.

Digestive System

A complex series of organs and glands responsible for the digestion and absorption of nutrients, and the expulsion of waste.