Which of the Following Statements Is Correct with Respect to GASB

question 66

Multiple Choice

Which of the following statements is correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

• A) Changes in the value of hedge derivatives are reported in the Statement of Net Assets.
• B) If a derivative is an investment derivative, the changes in the value of the derivative are deferred and reported in the statement of net assets.
• C) Statement No. 53 does not apply to proprietary or fiduciary funds.
• D) Statement No. 53 applies to government financial statements prepared using the modified accrual basis of accounting.

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Definitions:

Abstract Reasoning

The process of thinking about things that are not physically present, focusing on patterns and relationships.

Conservation

The practice of protecting and preserving natural resources and the environment through careful management and sustainable practices.

Knowledge Base

The collected information, facts, insights, and understandings an individual or organization possesses.

Automatization

The process by which tasks and processes become automatic and require less cognitive effort through repetition and practice.