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:

Heredity

The genetic transmission of characteristics from parents to offspring.

Emotional Intelligence

The skill to understand, regulate, and communicate personal emotions, as well as to navigate relationships with others in a thoughtful and compassionate manner.

Negative Emotions

Feelings that are perceived as unpleasant or harmful, such as sadness, anger, anxiety, or jealousy, which can impact mental health.

Positive Emotions

Feelings that are enjoyable or pleasant to experience, such as happiness, joy, love, and excitement.