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:

Standard Normal Distribution

A standard normal distribution characterized by a mean of 0 and a standard deviation of 1.

Values of Z

Refers to the scores derived from a standard normal distribution used in statistical analysis to determine probabilities.

Mean

The average value of a set of numbers, calculated by dividing the sum of all values by the number of values.

Normal Distribution

An equal-probability distribution around the mean, which shows that instances near the mean happen more frequently than instances far from the mean.