When Preparing Their Year-End Financial Statements,the Warner Company Includes a Footnote

question 11

Multiple Choice

When preparing their year-end financial statements,the Warner Company includes a footnote regarding their hedging activities during the year.Which of the following is NOT required to be disclosed?

• A)How hedge effectiveness is determined and assessed
• B)The specific types of risks being hedged,and how they are being hedged
• C)Alternative hedging options declined
• D)The net gain or loss reported for the period for fair value hedges and where in the financial statements it is reported

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Definitions:

Revoked

The act of officially withdrawing, canceling, or reversing a decision, privilege, or status.

Donor

A person who makes a gift.

Mutual Benefit Bailment

A bailment arrangement where both the bailor and the bailee receive a benefit from the transaction involving personal property.

Reasonable Care

The degree of caution and consideration an individual or organization is expected to exercise in a particular situation to avoid harm to others or their property.