Which of the Following Statements About Hedge Accounting Is TRUE

question 52

Multiple Choice

Which of the following statements about hedge accounting is TRUE?

• A)Hedge accounting is mandatory.
• B)Hedge accounting is applicable only if a receivable is being hedged.
• C)Hedge accounting is optional.
• D)Hedge accounting is applicable only if a liability is being hedged.

---

Definitions:

Economic Conditions

The state of the economy at a given time, which includes factors like inflation, unemployment rates, and GDP growth.

Severe Recession

An intense period of economic decline characterized by significant reductions in GDP, high unemployment, and contracting business activities.

Economic Condition

The state of an economy at a given time, including factors such as growth rate, inflation, employment levels, and overall economic health.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment.