Which of the Following Are Requirements for Hedge Accounting

question 99

Multiple Choice

Which of the following are requirements for hedge accounting?

• A)Reasonable expectation of hedge effectiveness.
• B)An existing risk management strategy involving hedging.
• C)Designation and documentation of the hedging relationship.
• D)All of these answers are correct.

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Definitions:

Tax Revenue

Government income generated from taxes levied on individuals and businesses.

Economic Instability

A situation where there is a high degree of unpredictability or fluctuation in the economic performance of a country, often characterized by high inflation, unemployment, and erratic growth.

Monetarists

Monetarists are economists convinced that changes in the amount of money circulating significantly impact a country's production in the short term and affect its price levels over extended durations.

School of Economics

An academic discipline that studies the production, distribution, and consumption of goods and services.