Which of the Following Statements Is Not Correct with Respect

question 77

Multiple Choice

Which of the following statements is not correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

• A) Derivatives include swaps, options, forward contracts and future contracts.
• B) If a derivative is effective in reducing a government's exposure to identifiable risks, the changes in the value of the derivative are reflected as investment gains or losses in the period that the value changes.
• C) If a hedge derivative is deemed ineffective it is classified as investment purpose.
• D) Statement No. 53 applies only to reporting at the government-wide level for derivatives held by governmental funds, not the fund-basis statements.

Understand the extent to which customer service quality impacts organizational success and customer loyalty.

Recognize the influence of work processes on delivering value to customers.

Understand the cost implications and financial planning considerations for replacing homemakers' services.

Demonstrate knowledge of the steps involved in life insurance planning, including requirement estimation and objective definition.

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Definitions:

Gross Profit Rate

A financial ratio that represents the portion of each dollar of revenue that remains after deducting the cost of goods sold, indicating the efficiency of production and pricing.

Equity Method

An accounting technique used by companies to assess the profits earned by their investments in other companies, where the investment gives the investor significant influence over the investee.

Intra-entity Purchases

Buying and selling of goods or services between departments or divisions within the same company.

Gross Profit Rate

The ratio of gross profit to net sales, indicating the efficiency of a company in managing its production and labor costs.