Which of the Following Is Done When Accounting for a Cash

question 25

Multiple Choice

Which of the following is done when accounting for a cash flow hedge, but is not done when accounting for a fair value hedge?

• A) The hedged asset or liability is adjusted to fair value.
• B) Foreign exchange gains or losses on the hedged asset or liability are recorded in net income.
• C) Increases or decreases in a derivative's fair value are recorded in accumulated other comprehensive income.
• D) Gains or losses resulting from adjusting the fair value of a derivative are recorded in net income.

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Definitions:

Sociological Theory

The framework of systematic and interconnected ideas used by sociologists to interpret and explain social phenomena and relationships.

Theoretical Perspectives

Frameworks or models that provide a systematic way to understand, explain, and make predictions about social behavior, structures, or systems.

Conservatives

A political and social ideology that emphasizes tradition, established institutions, and gradual change in society rather than radical reforms.

Enlightenment

a philosophical movement of the 18th century emphasizing reason, individualism, and skepticism towards traditional societal structures and religious dogma.