Which of the following is/are true?
A)Most derivative acquisitions represent marketable securities held as current assets.
B)The cash flow from operations section shows a subtraction for the increase in the current asset accounts in an amount equal to the firm's expenditure to acquire the derivative.
C)If the firm classifies the derivative as a nonoperating asset, then the cash outflow appears in the investing section of the statement of cash flows.
D)Subsequent to acquisition, the firm may report changes in the fair value of the derivative in income.
E)all of the above

Question

Quizplus · Accepted Answer

All the statements are true regarding derivatives and their accounting treatment. A) Derivatives are often classified as marketable securities and held as current assets. B) Increases in current asset accounts, like expenditures for derivatives, are subtracted in the cash flow from operations section. C) If classified as nonoperating assets, the cash outflow for derivatives appears in the investing section. D) Changes in the fair value of derivatives can be reported in income after acquisition.

Which of the Following Is/are True