Firms can elect the fair value option for the following items: (1) bonds held to maturity, (2) available-for-sale securities, and (3) cash flow hedges. Which of the following is/are true?
a. Applying the fair value option to investments in debt securities classified as held to maturity results in accounting for the investments as if they were a trading security, with changes in fair value recognized in income each period.
b. Applying the fair value option to available-for-sale securities results in reporting unrealized gains and losses from remeasurement to fair value in net income as fair value changes, instead of initially in other comprehensive income.
c. Applying the fair value option to cash flow hedges results in reporting unrealized gains and losses from remeasurement to fair value in net income as fair value changes, instead of initially in other comprehensive income.
d. all of the above
e. none of the above
D
You might also like to view...
Current assets, other than cash, are expected to be sold or consumed are during a company's normal operating cycle
a. True b. False Indicate whether the statement is true or false
Instead of suing the partnerships or other partners at law, general partners are given the right to bring a(n) ________ against other partners
A) claim for damages B) tort action C) call for action D) action for an accounting
The role of decision trees in product design is to:
A) rank products in descending order of their dollar contribution to the firm. B) better understand the customers' wants. C) calculate the expected value of each course of action. D) calculate the value of quality function deployment. E) calculate the value of the moment of truth.
The earned value of a project is the cumulative total costs incurred in accomplishing the various work packages
Indicate whether the statement is true or false