ACC 423 Course Great Wisdom / tutorialrank.com ACC 423 Course Great Wisdom / tutorialrank.com | Page 21

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 .