International Accounting Standards Differ from U

question 48

Multiple Choice

International accounting standards differ from U.S.Generally Accepted Accounting Principles in that International standards

• A)require that firm sale or purchase commitments are accounted for as fair value hedges.
• B)require that firm sale or purchase commitments are accounted for as cash flow hedges.
• C)state that firm sale or purchase commitments may not be treated as a hedged transaction.
• D)permit firm sale or purchase commitments to be accounted for as either fair value hedges or cash flow hedges.

---

Definitions:

Wingspan

The measure of distance from one wingtip of an animal or aircraft to the other; in business, it can metaphorically refer to the reach or spread of a company's influence.

Altitudes

The height of an object or point in relation to sea level or ground level.

GEO

Short for Geostationary Earth Orbit, a circular orbit 35,786 kilometers above the Earth's equator where a satellite's orbital period matches the Earth's rotation, appearing stationary to an observer on Earth.

LEO

Stands for Low Earth Orbit, a satellite's orbit relatively close to Earth's surface, typically at altitudes less than 2,000 kilometers, used for telecommunications, military, and observation purposes.