GAAP requires that all derivative financial instruments be reported at their
A) ?historical cost.
B) ?fair value.
C) ?present value.
D) ?par value.
B
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Scott has a bachelor's degree in ethics and human resources, and he has extensive experience working with employees and managers regarding ethics, especially in the area of ethical dilemmas. In his current position he has assisted extensively in determining if the company's decisions are both ethical and lawful. Which position in the company does Scott's background make him ideally suited for?
A. board of directors position B. values specialist C. ethical dilemma watchdog D. decision tree manager E. ethics officer
An investor purchased 500 shares of common stock, $25 par, for $19,250 . Subsequently, 100 shares were sold for $35 per share. What is the amount of gain or loss on the sale?
a. $3,500 gain b. $350 gain c. $350 loss d. $500 gain
According to generally accepted accounting principles, the proper accounting treatment of the cost of developing intangible assets is to
a. carry the cost as an asset indefinitely. b. amortize the cost over five years. c. amortize the cost over a reasonable life. d. write off the cost immediately.
A company has provided a sales budget for the next four months (January, February, March, and April). It bases its production budget on the sales budget, and has a policy that each month's ending inventory of finished product must be equal to 25% of the following month's sales needs. The direct materials purchases budget is based on the production budget. The company's policy for each month's
ending inventory of raw materials is that they must be equal to 10% of the following month's production needs for raw materials. Given this information, the company can prepare direct materials purchases budgets for how many months? A) one B) two C) three D) four E) five