How Should Changes in the Fair Value of Derivatives Be

question 14

Multiple Choice

How should changes in the fair value of derivatives be reported in a government's financial statements?

• A) Gains or losses in the government-wide statement of activities.
• B) Losses but not gains in general fund statements of revenues, expenditures, and changes in fund balance.
• C) Gains or losses in the government-wide statement of activities, except for derivatives that qualify as hedges.
• D) Only disclosed in the notes.

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Definitions:

Inner Mitochondrial Membrane

The membrane inside mitochondria that is the site of the electron transport chain and ATP (adenosine triphosphate) production.

Electron Transport Chain

A series of complexes that transfer electrons from electron donors to electron acceptors via redox reactions, coupled with the transfer of protons across a membrane to generate ATP.

ATP Formation

The biochemical process by which cells generate adenosine triphosphate (ATP), a molecule that stores and transfers energy within cells.

Acetate

A salt or ester of acetic acid, often used as a solvent or in making synthetic fibers or plastics.