Which of the Following Statements About the Gross Method of Recording

question 49

Multiple Choice

Which of the following statements about the gross method of recording a hedge is true?

• A)It can only be used for internal record-keeping.
• B)The receivable and payable under the forward contract are recorded separately at fair value.
• C)The receivable and payable under the forward contract are netted together and only the net amount is recorded.
• D)The gross method provides a slightly different result than the net method.

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Definitions:

Molarity

The quantification of how much solute is present in a solution, represented by moles of solute per liter of solution.

Infrared Region

A portion of the electromagnetic spectrum with wavelengths longer than visible light and shorter than microwaves, typically used in heating and imaging technologies.

Ultraviolet Region

A portion of the electromagnetic spectrum with wavelengths shorter than visible light but longer than X-rays, often utilized in health, forensics, and sterilization practices.

Ionizing Radiation

High-energy radiation that can remove tightly bound electrons from the orbit of an atom, causing the atom to become charged or ionized.