Changes in the fair value of the effective portion of a hedging financial instrument are recognized as a part of current earnings of the period for which of the following? Cash Flow Hedge Fair Value Hedge a. Yes Yes b. No Yes c. Yes No d. No No

Changes in the fair value of the effective portion of a hedging financial instrument are recognized as a part of current earnings of the period for which of the following? Cash Flow Hedge Fair Value Hedge a. Yes Yes b. No Yes c. Yes No d. No No

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 34GI

See similar textbooks

Related questions

Q: Melissa Allen need to take out if she needed $4,500 at 7% for 85/360 days for a simple discount…

A: Answer :Amount = $4500 Rate = 7% Days = 85/360 Maturity value = Amount / 1-(Rate*days)

Q: U3 Company is considering three long-term capital investment proposals. Each investment has a useful…

A: The difference between the present value of cash inflows and the present value of cash outflows over…

Q: Lansing, Inc. provides the following information for one of its department’s operations for June (no…

A: The relative frequency or significance of particular variables in a data collection is taken into…

Q: Mary-Ann is age 60 and plans to retire this year. She and her husband Wayne, age 66 have approached…

A: The RPP means the retirement pension plan that is created by the employer for its employees. This…

Q: In October, Pine Company reports 19.000 actual direct labor hours, and it incurs $114.210 of…

A: The distinction between both the standard cost of overhead permitted for the actual output obtained…

Q: Fasani produces premium bottled water. Fasani purchases artesian water, stores the water in large…

A: Note: As per our guidelines, we will solve the first three subparts for you. 1. Conversion Cost:…

Q: On December 29, Patel Products, Incorporated, sells a delivery van that cost $20,000. After…

A: Accumulated depreciation is the cumulative balance of the depreciation expense which is shown in the…

Q: Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square…

A: Percentage of usage of Janitorial Department by Cutting Department: = Square feet occupied by…

Q: The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: If bonds with a face value of $570,000 are issued at 106, the amount of cash proceeds is $535,800…

A: Answer to Question:- $604,200 Workings:- Amount of Face Value of Bond =$570,000 Face value per bond…

Q: the first interest payment on June 30, 2025, what is the balance of Discount on Bonds Payable?…

A: Discount on bond Payable means the bond issued at a less amount from its face value. The journal…

Q: Identifying and Analyzing Financial Statement Effects of Dividends The statement of shareholders'…

A: Financial Statement Effect - Financial statement includes balance sheet and income statement items…

Q: Global Commerce Corporation purchased trading debt investments for $222,000 on December 31, 2024.…

A: Journal entry is the record which is prepared by the entity to maintain a report of daily business…

Q: This is a transaction for a merchandise business under PERIODIC INVENTORY SYSTEM. Please show the…

A: Periodic inventory system is one of the system used for inventory calculation and valuation. Under…

Q: Problem 16-55 (Static) Solve for Master Budget Given Actual Results (LO 16-2, 4) The following are…

A: The master budget is a comprehensive financial planning document. It usually includes all of the…

Q: Using semiannual compounding, find the prices of the following bonds: a. A 9.4%, 15-year bond priced…

A: Note:- Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Julia's Motorcycles Inc. produces one model of motorcycle, called the Lightning. The Lightning has…

A: MSRP stands for "manufacturer's recommended retail price," which refers to the price that a…

Q: The General Fund for Nisland has the following budget for the current year:…

A: A journal is the company's official book in which all business transactions are recorded in…

Q: sing the expanded accounting equation, calculate and enter the answers for each question. You will…

A: In this question, we need to answer a series of questions using accounting equation Accounting…

Q: 1 How do you see the future of banking? How has the crisis changed banks?

A: Here asked for multi question we will solve for first question as per guidelines. If you need…

Q: At the end of the current year, the bond accounts of Hobeen Services showed the following balances:…

A: On the retirement of bonds: There will be cash outflow. Liabilities would be decreased. any…

Q: Please advise on the answers for After Tax (C) the first two answers are wrong. It is not -26100 and…

A: Discontinued operations refer to the business units that start turning unprofitable to the business.…

Q: help me answer 12 13 14 only with full solution

A: Introduction: Under the direct method of allocation of costs, cost of service departments are…

Q: Selected information related to warranties provided by IBM follows (in millions of U.S. dollars):…

A: A warranty expense is the expense of repairing, replacing, or compensating a consumer for any…

Q: Common Stock Holdings-Blue Investments, Inc. Cash Equity Investments-Blue Investments, Inc. Cash…

A: There is need of record in the journal for each and every transactions made and there is double…

Q: 6. Suppose that the company’s minimum required rate of return on operating assets is 13% and that…

A: 6a. $1,786,200 6.b. $554,615 6.c. $2,304,815

Q: Mr Mohammed withdraws £50 business money from the Business bank account for office use. Which of the…

A: Every transactions affect either two or more accounts. Contra entries are the transactions which…

Q: On July 1, Coastal Distribution Company is considering leasing a building and buying the necessary…

A: Income statement is prepared by the business entities so as to know how much amount of gross profit…

Q: M acquired a home in 2015 for $300,000 and a cottage in 2019 for $200,000. In 2022 M sold the home…

A: If anybody sold land or building after possessing the land or building for more than 24 months then…

Q: Problem 5-A (Projected Income Statement) MAXI Co. has the following information: ● Projected sales…

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Q: Which of the following statements regarding debt securities is incorrect? All invento Quriti

A: The incorrect statement is: (A) All investments in debt securities are categorised as long-term…

Q: Riverside Company uses the indirect method to prepare the statement of cash flows. Please refer to…

A: Answer to Question:- b) Net cash provided by operating activities $11,000…

Q: The gain on discharge of debt is Select one: a. $1,110,000 b. $710,000 c. $780,000 d $130.000

A: The correct solution is: c. $780,000

Q: An investment will pay $20,000 at the end of the first year, $30,000 at the end of the second year,…

A: Present value of annuity is the current value of future payments from an annuity.

Q: National Financial Services, Inc. invested $30,000 to acquire 3,750 shares of Stonebridge…

A: If the shares sold with a increased price than the purchased price the gain on sale of shares will…

Q: At December 31, the records of Kozmetsky Corporation provided the following selected and incomplete…

A: The net profit of a company is divided by the total number of outstanding common shares to arrive at…

Q: On January 1, 2024, Byner Company purchased a used tractor. Byner paid $5,000 down and signed a…

A: Lets understand the basics. When any asset is purchased using the non interest bearning notes then…

Q: Required Use Illustration 13-4. Select from the list of Internal Revenue Code section under which…

A: NPF or Not For Profit organisation refers to a company whose sole motive is not to earn profits but…

Q: (Cash conversion cycle) Historical data for the firm's sales, accounts receivable, inventories, and…

A: Accounts receivables is the amount to be received from the customers. It is current asset for the…

Q: Identifying and Analyzing Financial Statement Effects of Stock Transactions Melo Company reports the…

A: The treasury stock includes the own shares of the company that are repurchased from the…

Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…

A: Lets understand the basics. Single plantwide rate is as name suggest a single rate to overhead cost…

Q: O to be done in a good state OIRS involvement

A: Estate planning there is need of proper planning so that assets are transferred to the legal heirs…

Q: Julia's Motorcycles Inc. produces one model of motorcycle, called the Lightning. The Lightning has…

A: Actual selling price after discount = $2,500 (1-0.18) =$2,050 Amount of distributers margin =…

Q: 7. Using the direct method, what is the total amount of service department costs allocated to…

A: Meaning of cost allocation Allocating the cost of service department into production department…

Q: Investor Matt has $324,000 to invest in bonds. Bond A yields an average of 7.3% and the bond B…

Q: Andrew Wilson, CPA, has assembled the financial statements of Texas Mirror Co. Texas Mirror is a…

A: Generally Accepted Auditing Standard - AICPA The auditors are personally accountable for their level…

Q: TV Company uses the indirect method to prepare its statement of cash flows. Please refer to the…

A: Statement of cash flows provide the details of all transactions which involves the cash by…

Q: • Sales are budgeted at $367,000 for November, $337,000 for December, and $317,000 for January. .…

A: Net income is the amount which is earned by the entity during the period and is calculated by…

Q: Warner Company's year-end unadjusted trial balance shows accounts receivable of $118,000, allowance…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: On December 31, 2011, WILLS International purchased 70% of the outstanding common stock of SEMS…

A: The question is given to prepare the consolidation work papers for WIILS and SEMS for the year 2012.…

Question

5. Changes in the fair value of the effective portion of a hedging financial instrument are recognized as a part of current earnings of the period for which of the following?

	Cash Flow Hedge	Fair Value Hedge
a.	Yes	Yes
b.	No	Yes
c.	Yes	No
d.	No	No

Multiple Choice

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

choose the correct answer: Equity security acquired for trading should be measured at reporting date a. cost, being the purchase price b. cost, being the purchase price plus transaction costs c. fair value, with change in FV taken through profit or loss. d. fair value, with change in FV taken through other comprehensive income.
For an individual investor, investment in which one of the following accounts has the best liquidity? a. Group of answer choices b. regular taxable investment account c. 401 (k) d. RA e. Roth IRA
How is the impact of uncertainty reflected in a discounted cash flow (DCF) analysis?a) Debt/equity mixb) Discount ratec) Income tax rated) Interest coverage ratio
Financial liabilities that are classified as amortized cost are subsequently measured at A. Partly at profit or loss and partly at other comprehensive income depending on the risk. B. Fair value with changes in value recognized in other comprehensive income. (FVPL) C. Fair value which changes in value recognized in profit or loss. (held for trading) D. The present value of the remaining cash flows of the instrument discounted at the original effective interest rate.
What is the default classification for an equity investment? A Fair value through profit or loss B Fair value through other comprehensive income C Amortised cost D Net proceeds
How is the adjustment to fair value recorded differently for a cash flow hedge versus a fair value hedge? That is, how does the fair value adjustment of each type of hedge affect current period net income and the accounting equation?
Which of the following is classified as nonmonetary? a. Cash surrender value b. Long-term receivable c. Accrued liability on firm purchase commitment d. Inventory
Current LiabilitiesPROBLEM 1: TRUE OR FALSE4. Financial liabilities other than FVPL liabilities are initiallymeasured at fair value plus transaction costs.5. Amortized cost financial liabilities are subsequently measuredat the present value of the cash outflows from the instrument.6. Financial liabilities may be subsequently reclassified betweenthe amortized cost and fair value measurement categories.7. Trade payables and other liabilities that are part of an entity'sworking capital may be presented as current liabilities even ifthey are expected to be settled beyond one year.8. According to PAS 1, a currently maturing debt that the entity'smanagement intends to refinance is presented as noncurrent.9. According to PFRS 15, if an entity expects that a portion of giftcertificates sold will not be redeemed, the entity recognizes theexpected breakage amount as revenue in proportion to thepattern of rights exercised by customers.10. Unearned revenue is revenue that is earned but not yet…
Which of the following is the second option in measuring the equity instrument issued to extinguish a financial liability A.fair value of the equity instrument B.carrying amount of the equity instrument Cfair value of the financial liability D.carrying amount of the financial liability
3. Transaction costs incurred the effective interest rate to be used for amortization of an investment in debt security accounted for as A. Increase; Fair value through profit or loss Decrease; Amortized cost C. Increase; Fair value through other comprehensive income D. Does not affect; Amortized cost В.
Investment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI? A. Interest calculated using the effective interest method. B. All of these. C. Changes in fair value D. Impairment gains and losses
Fair value is used to value which of the following balance sheet accounts? a. Prepaid expenses; patents; property, plant, and equipment b. Capital lease obligations, bonds payable c. Receivables net of allowance for doubtful accounts d. Debtsecurities available for sale, trading securities