Which Is a True Statement Regarding the Fundamental Requirement of Accounting

question 30

Multiple Choice

Which is a true statement regarding the fundamental requirement of accounting for derivatives?

• A) Derivatives are reported on the balance sheet only as an asset.
• B) Derivatives are reported on the balance sheet only as a liability.
• C) Changes in derivative cost basis are recorded in the asset value.
• D) Changes in derivative fair value are included in comprehensive income.
• E) Changes in derivative cost basis are recorded in the liability value.

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Definitions:

Retina

The light-sensitive layer of tissue at the back of the inner eye, which converts light into neural signals sent to the brain.

Cones

Photoreceptor cells in the retina of the eye that function best in bright light and enable color vision and fine detail perception.

Rods

Photoreceptor cells in the retina of the eye that are sensitive to low light levels, contributing to night vision.

Iris

The colored part of the eye that controls the size of the pupil and the amount of light that enters the eye.