Which of the following is true about the user of derivatives?
A) Derivatives usually appear explicitly in the financial statements.
B) Academic surveys account for much of our knowledge of corporate derivatives use.
C) Smaller firms are more likely to use derivatives than large firms.
D) The most frequently used derivatives are commodity and equity futures.
E) None of these. are truE.

Question

Quizplus · Accepted Answer

Derivatives are typically not explicitly disclosed in financial statements, so option A is incorrect. Academic surveys are a common source of information on corporate derivatives usage, so option B is correct. Large firms are generally more likely to use derivatives as they have more complex financial needs, making option C incorrect. The most commonly used derivatives vary depending on the industry and the specific firm's needs, so option D is incorrect.

Which of the Following Is True About the User of Derivatives