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.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, contrasting with normal goods.

Substitute

A good or service that can be used in place of another good or service, often due to similarities in features or functions.

Expensive

Describing an item or service that has a high cost or price relative to its perceived value or compared to other options.

Maple Syrup

A sweet liquid made by boiling the sap of maple trees, commonly used as a topping for pancakes and waffles.