Question

Gains or losses on cash flow hedges are Group of answer choices ignored completely. recorded in equity, as part of other comprehensive income. reported directly in retained earnings. reported directly in net income.

Answer 1

Answer: The correct answer is "recorded in equity recorded in equity, as part of other comprehensive income.".

Explanation: Gains or losses on cash flow hedges are recorded in equity, as part of other comprehensive income.

The gains or losses of a cash flow hedge must be recorded, as part of other comprehensive income, in equity.