Under US GAAP, What Method of Amortizing Discounts or Premiums on on Forward

question 55

Multiple Choice

Under U.S. GAAP, what method of amortizing discounts or premiums on forward contracts must be used?

• A) Weighted average method or accelerated method
• B) Sum of digit method only
• C) Effective interest rate method or straight line method
• D) Straight line method only

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