C. the security must be a debt security.
D. All of these are required.
28) All of the following are requirements for disclosures related to fin
ancial instruments EXCEPT
A. combining or netting the fair value of separate financial instrume
nts.
B. displaying as a separate classification of other comprehensive inc
ome the net gain/loss on derivative instruments designated in cash flo
w hedges.
C. distinguishing between financial instruments held or issued for pu
rposes other than trading.
D. disclosing the fair value and related carrying value of the instrum
ents.
29) The accounting for fair value hedges records the derivative at its
A. fair value.
B. historical cost.
C. carrying value.
D. amortized cost.
30) All of the following are characteristics of a derivative financial ins
trument EXCEPT the instrument
A. requires or permits net settlement.
B. All of these are characteristics.
C. requires a large investment at the inception of the contract.
D. has one or more underlyings and an identified payment provision.
31) Taxable income of a corporation
A. is based on generally accepted accounting principles.
B. is reported on the corporation‟s income statement.
C. differs from accounting income due to differences in interperiod a
llocation and permanent differences between the two methods of inco
me determination.
D. differs from accounting income due to differences in intraperiod a
llocation between the two methods of income determination.
32) Interperiod income tax allocation causes
A. tax liability shown in the balance sheet to bear a normal relation t
o the income before tax reported in the income statement.
B. tax expense shown in the income statement to bear a normal relati
on to the tax liability.