Asked by Estefania Carlos on Jun 29, 2024
Verified
A derivative may be
A) an asset account
B) a liability account
C) an owners' equity account
D) either an asset or a liability account
Derivative
A financial instrument whose value is based on or derived from one or more underlying assets.
Asset Account
An account on a company's balance sheet that represents a resource with economic value owned or controlled as a result of past transactions.
Liability Account
A Liability Account represents a company's financial obligations or debts that arise during the course of business operations.
- Explain the features and the accounting procedures for derivatives and hedges.
Verified Answer
Learning Objectives
- Explain the features and the accounting procedures for derivatives and hedges.
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