Under US GAAP, Where Are Changes in the Fair Value of of Derivatives

question 1

Multiple Choice

Under U.S. GAAP, where are changes in the fair value of derivatives reported?

• A) As part of "Accumulated Other Comprehensive Income" on the Balance Sheet
• B) They are not recognized until the options are exercised
• C) Retained Earnings
• D) None of the above

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Definitions:

Causally Related

A relationship between variables where a change in one variable directly causes a change in another variable.

Variability

The extent to which data points in a statistical distribution or data set diverge from the average or mean.

Criterion Variables

Outcome variables that are used to assess the effects of manipulations or treatments in an experiment.

Predictor Variables

Predictor variables are the independent variables in a study that are used to predict the outcome of the dependent variable(s).