For Speculative Derivatives, the Change in the Fair Value of the Derivative

question 37

Multiple Choice

For speculative derivatives, the change in the fair value of the derivative must be:

• A) Utilized to adjust the derivative asset.
• B) Recognized immediately as a gain or loss in net income.
• C) Recognized as a loss in other comprehensive income.
• D) Recognized as a gain in other comprehensive income.
• E) Recognized as a gain or loss in net income at a later date.

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Definitions:

Standard Deviations

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from the mean.

Mean

In statistics, it refers to the average value in a set of numbers, calculated by dividing the sum of all values by the number of values.

Scatterplot

A graphical representation displaying the relationship between two quantitative variables.

Correlated

A term indicating a statistically significant relationship between two or more variables, implying that changes in one are associated with changes in the other.