Which One of the Following Is a Derivative Asset

question 35

Multiple Choice

Which one of the following is a derivative asset?

• A)common stock
• B)option contract
• C)government bond
• D)preferred stock
• E)corporate bond

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Definitions:

Accounting Periods

Specific spans of time for which financial reports are prepared, usually quarterly or annually.

Prepaid Expense

Expenses paid in advance and recorded as assets before they are used or consumed.

Consumed

Consumed refers to the portion of resources, goods, or services that have been used up in the process of generating revenue.

Accounting Period

A specific period of time covered by financial statements, usually encompassing a fiscal quarter or year.