Which of the Following Statements About Hedge Accounting Is True

question 47

Multiple Choice

Which of the following statements about hedge accounting is true?

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

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Definitions:

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, typically measured on an annual basis.

Government Control

Government control refers to the mechanisms, regulations, and actions taken by a government to oversee, direct, or manage its country's economic activities, industries, or individual behavior.

Public Outlays

Government spending or expenditure, including costs on public services, infrastructure, and social welfare programs.

Natural Resources

Naturally occurring materials or commodities valuable for their intrinsic properties and used by humans for production, such as minerals, forests, and water bodies.