Gains and Losses Resulting from a Derivative Instrument Used for a Cash

question 73

Multiple Choice

Gains and losses resulting from a derivative instrument used for a cash flow hedge are recognized in current earnings:

• A)​for the portion is deemed ineffective.
• B)​as incurred.
• C)​in the same period the hedged item affects earnings.
• D)​Both a and c are correct.

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Definitions:

Savant Syndrome

A rare condition where an individual with significant mental disabilities demonstrates profound and prodigious capacities or abilities in a specific area.

Cognitive Processing

The mental activities involved in the acquisition, storage, manipulation, and retrieval of information, encompassing processes such as perception, memory, and reasoning.

Savant Syndrome

A condition where a person with significant mental disabilities demonstrates certain abilities far in excess of average.

Abstract Concepts

Ideas that do not have a physical, tangible reality and are often complex, such as justice, love, or freedom.