If a Derivative Is Not Designated as a Hedge

question 1

Multiple Choice

If a derivative is not designated as a hedge:

• A) the change in market value must be recognized in net income when it changes.
• B) the change in market value is not recognized in net income.
• C) the change in fair value is not recognized in net income.
• D) the change in fair value must be recognized in net income when it changes.

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