Which of the following is not true about derivatives?
A) Large losses on derivative investments have been reported in the press.
B) Derivatives are so named because their value is derived from some underlying measure.
C) Derivatives are useful instruments for managing risk.
D) Accounting for derivatives is fully resolved and no additional rules or interpretations are likely.

Question

Quizplus · Accepted Answer

Accounting for derivatives is a complex and ongoing issue, and additional rules and interpretations are likely to be developed in the future.

Which of the Following Is Not True About Derivatives