In: Accounting
Part 1
None of the given option correct
As deprecation is already deducted from the income and it is not treated as a source of income
Decrease in accounts payable, increase in accounts receivable and increase in inventory are refers to use of cash
Part 2
Option C
C. Topic 830
FASB ASC Topic 830 provides details regarding Foreign Currency Matters and for operations undertaken in a foreign currency environment. It also provides the accounting guidance for transactions denominated in a foreign currency.
Part 3
Option A
a. Statement of cash flows
As cash flows are important for a company’s financial health, the statement of cash flows generates and delivers useful information to Lenders, creditors, and investors.
Part 4
Option B.
b. Fair value hedge
According to Fair Value Measurement, the derivatives are reflected at fair value in financial statements. For fair value hedge, ASC Topic 815 requires that gains and losses of a revaluation be recognized as income or expense together with the offsetting gains and losses of the hedged item