Which Is a True Statement Regarding the Fundamental Requirement of Accounting

question 30

Multiple Choice

Which is a true statement regarding the fundamental requirement of accounting for derivatives?

• A) Derivatives are reported on the balance sheet only as an asset.
• B) Derivatives are reported on the balance sheet only as a liability.
• C) Changes in derivative cost basis are recorded in the asset value.
• D) Changes in derivative fair value are included in comprehensive income.
• E) Changes in derivative cost basis are recorded in the liability value.

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Definitions:

Extraneous Variable

Any variable that is not intentionally studied within an experiment which could affect the outcome and thus confound the results.

Confounding Variable

An extraneous variable in an experimental design that correlates with both the dependent and independent variables, potentially skewing results.

Ethical Guidelines

Principles designed to guide behavior and decisions in a moral and responsible manner, especially in research and professional practices.

Painful Procedures

Medical or surgical operations that cause discomfort or distress to patients.