Which of the Following Statements Is Correct with Respect to GASB

question 8

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 deferred and reported in the Statement of Net Position.
• 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 Position.
• C) Statement No. 53 does not apply to proprietary funds.
• D) Statement No. 53 applies to government financial statements prepared using the modified accrual basis of accounting.

Understand the characteristics and liabilities associated with different forms of business organizations, specifically sole proprietorships, partnerships, and corporations.

Recognize the legal implications of the relationships between agency, principal, and third parties.

Comprehend the concept of fiduciary duties within various business relationships.

Identify the consequences of an individual's actions in a partnership or sole proprietorship on personal and business liability.

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Definitions:

Role Model

An individual admired for their qualities or achievements and considered as an example to emulate.

Communication

The process of transmitting information, ideas, emotions, skills, and knowledge between two or more individuals through verbal, written, nonverbal, and digital means.

Unavailable

Not able to be used, accessed, or participated in due to various reasons.

Inflexibility

The lack of willingness or ability to change or adapt as circumstances require.