Which of the Following Is/aretrue

question 81

Multiple Choice

Which of the following is/aretrue?

• A)U.S.GAAP and IFRS allow firms to choose whether to designate a particular derivative as a hedge, and therefore eligible for hedge accounting.
• B)Firms remeasure derivatives not designated as a hedge to fair value at every balance sheet date and include changes in fair value in net income.
• C)For a derivative designated as a hedge, firms must further designate it as hedging the risk of a change in fair value (fair value hedges) or a change in cash flows (cash flow hedges).
• D)all of the above
• E)none of the above

---

Definitions:

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to generate energy through the oxidation of acetate derived from carbohydrates, fats, and proteins.

Preparatory Reaction

A phase in cellular respiration where pyruvate from glycolysis is converted into acetyl-CoA, enabling the next steps in energy production.

Cellular Respiration

The metabolic process in which cells break down sugars to generate energy in the form of ATP, involving pathways like glycolysis and the Krebs cycle.

Carbon Dioxide

Originating from the combustion of carbonaceous materials and the process of respiration, this gas lacks color and smell. It is a naturally existing element of air that plants use in photosynthesis.