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 instrument 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 allocation and permanent differences between the two methods of income determination.
D. differs from accounting income due to differences in intraperiod allocation 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 to the income before tax reported in the income statement.