Which of the Following Is Not One of the Conditions

question 30

Multiple Choice

Which of the following is not one of the conditions that must be met to qualify for hedge accounting?

• A)The hedge relationship must be designated and documented.
• B)The hedge is expected to be effective.
• C)The effectiveness of the hedge can easily be determined.
• D)The hedge is assessed at the beginning and at the end of the hedging period.

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Definitions:

Businesses

Organizations engaged in commercial, industrial, or professional activities with the purpose of earning profit.

Corporate Standards

Established norms, policies, and guidelines that govern business operations within a corporation.

Team Effectiveness

The capacity of a group of individuals to work together efficiently to achieve their goals and objectives.

Synergy

The combined effect of a group that exceeds the sum of the effects of individual members.