Which of the Following Is Not True Regarding the Fair

question 18

Multiple Choice

Which of the following is not true regarding the fair value option for marketable securities and derivatives?

• A)Subsequent to the acquisition of a derivative, the firm may report changes in fair value of derivatives in Other Comprehensive Income.
• B)Subsequent to the acquisition of a derivative, the firm may report changes in fair value of derivatives, but they have no effect on any lines of the statement of cash flows.
• C)Firms using the fair value option mark the carrying value of the asset to fair value each period.
• D)If the change in fair value of the derivative decreases carrying value, then the firm reports the amount of that decrease as a loss during the current period.
• E)If the change in fair value of the derivative decreases carrying value, then the cash flow from operations sections shows a subtraction for the loss.

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Definitions:

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Undifferentiated Targeting Strategy

A marketing approach where a company decides to ignore market segment differences and appeal to the whole market with one offer or product.

Mass-Marketing

Mass-marketing refers to a marketing strategy that aims to appeal to a large audience by using channels that reach a wide and diverse group of consumers simultaneously.

Segmenting And Positioning

The process of dividing a market into distinct groups of buyers and tailoring marketing strategies to meet their needs.