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.

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Definitions:

Salivary Gland

An exocrine gland in the mouth that produces saliva, which aids in digestion and helps maintain oral health.

Hair Cells

Specialized cells located in the inner ear that convert sound waves into electrical signals which can be interpreted by the brain.

Basilar Cells

Specialized cells found in the organ of Corti within the cochlea of the inner ear, which play a role in the hearing process by supporting the hair cells responsible for converting sound vibrations into electrical signals.

Ossicles

Three small bones located in the middle ear known as the malleus, incus, and stapes, which transmit sound vibrations from the eardrum to the inner ear.