All of the Following Events Would Be Recorded in Other

question 100

Multiple Choice

All of the following events would be recorded in other comprehensive income except:

• A)gains and losses on cash flow hedges.
• B)unrealized gains and losses on available for sale securities.
• C)gains from writing up property plant and equipment to market value.
• D)unrealized gains only on trading securities.

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Definitions:

Selling Receivables

The process of selling a company's outstanding invoices to a third party to improve cash flow and reduce risk.

Risk

The possibility of experiencing loss or other adverse effects in business or investment.

Allowance Method

An accounting technique to estimate and record bad debts by recognizing a provision for accounts receivable that might not be collected.

Bad Debt Expense

An expense recorded by businesses to reflect irrecoverable amounts owed by customers, considered an unavoidable cost of extending credit.