Financial Instruments That Are Not Listed on the Balance Sheet

question 82

Multiple Choice

Financial instruments that are not listed on the balance sheet of a company

• A)may involve significant risks that must be disclosed in the notes to the financial statements.
• B)are reported as assets if the company can determine the fair value.
• C)must be reported as a liability on the balance sheet at the end of the accounting period.
• D)must be reported on the income statement.

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Definitions:

Polygenic

A trait or characteristic that is influenced by multiple genes, often resulting in a continuous range of possibilities.

Dizygotic Twins

Twins that develop from two different eggs fertilized by two different sperm cells, making them genetically unique from one another, similar to typical siblings.

Heterozygous

A genetic condition where an individual has two different alleles of a gene.

Dominant–Recessive Pattern

The interaction of a heterozygous pair of alleles in such a way that the phenotype reflects one allele (the dominant gene) more than the other (the recessive gene).