Which of the Following Is Not True

question 128

Multiple Choice

Which of the following is not true?

• A)A firm must recognize derivatives on its balance sheet as assets or liabilities, depending on the rights and obligations under the contract.
• B)Firms must remeasure derivatives to fair value each period.
• C)The change in fair value either increases or decreases the balance sheet carrying value of the derivative asset or liability.
• D)The change in fair value affects either (1) net income immediately (like a trading security), or (2) other comprehensive income immediately and net income later (like securities available-for-sale).
• E)The income effect of a change in the fair value of a derivative is independent of the purpose for which a firm acquires the derivative and whether the firm chooses to apply hedge accounting.

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Definitions:

Physical Attractiveness

The degree to which a person’s physical traits are considered aesthetically pleasing or beautiful according to societal standards.

Heterosexual Relationship

A romantic and/or sexual relationship between individuals of the opposite sex.

Anxious-Ambivalent

A type of attachment style characterized by strong emotional attachment combined with high levels of anxiety about the relationship’s security.

Avoidant

A behavior or personality trait characterized by a desire to evade certain situations, often stemming from anxiety or discomfort.