Which of the Following Is Not a Generally Practiced Method

question 8

Multiple Choice

Which of the following is not a generally practiced method of presenting the income statement?

• A)Including corrections of errors made in a prior period
• B)The single-step income statement
• C)The consolidated statement of income
• D)Including gains and losses from discontinued operations of a segment of a business in determining net income

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Definitions:

Put Option

A financial contract allowing the holder to sell a specific amount of an underlying asset at a predetermined price within a specified time frame.

Hedge Ratio

A ratio used to calculate the amount of derivatives needed to hedge a position or portfolio, often used to minimize risk exposure.

Delta

A measure in financial markets that compares the change in the price of a derivative to the change in the price of its underlying asset.

Gamma

A measure of the rate of change in an option's delta for a one-unit change in the price of the underlying asset.