Gains on Derivatives Should

question 74

Multiple Choice

Gains on derivatives should

• A) be booked through other comprehensive income.
• B) be booked through net income.
• C) be recorded as deferred revenue.
• D) not be recorded.

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Definitions:

Government Backing

Support or endorsement provided by a government, which can include financial guarantees, subsidies, or other forms of assistance.

Ordinary Course

Actions and transactions that are routine or normal for a particular business or industry, typically excluding extraordinary or unusual activities.

Security Interest

A legal claim or lien on collateral that gives a lender the right to repossession if the borrower defaults on the agreement.

Legal Enforceability

The characteristic of a contract or agreement that allows it to be upheld or compelled by law.