Which Statement Is Not True for a Partial Derecognition-Say 30%-Of

question 26

Multiple Choice

Which statement is not true for a partial derecognition-say 30%-of a financial liability?

• A)Record derecognition of 30% of the book value of the financial liability.
• B)Record derecognition and the acquisition of 70% as a new liability.
• C)Record derecognition of 30% of the unamortized premium or discount.
• D)Record the gain or loss on derecognition of 30% of the financial liability.

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Definitions:

Cost Leadership Strategy

A business strategy focused on gaining a competitive advantage by being the lowest cost producer in the industry.

Gains In Productivity

Increases in output per unit of input, often realized through improvements in efficiency, technology, or methods of work.

Employee Benefits

Various types of non-wage compensation provided to employees in addition to their normal salaries or wages.

Organizational Structure

The way in which the work, authority, and systems of communication are organized within a company or institution.