Which of the Following Best Describes the Requirements Under Australian

question 1

Multiple Choice

Which of the following best describes the requirements under Australian Accounting Standard AASB 139?

• A) All financial instruments are accounted for using hedge accounting
• B) Hedging arrangements must meet certain requirements before hedge accounting can be applied
• C) Financial instruments must meet certain requirements before hedge accounting can be applied
• D) All hedging arrangements are accounted for using the general principles of accounting for financial instruments

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Definitions:

Private Consumptions

refers to the total amount of goods and services consumed by private households.

Total Amount

The sum of all quantities or values in a given context.

Utility Function

A mathematical representation that shows the relationship between an individual's satisfaction and their consumption of different goods and services.

Private Consumptions

Refers to the spending on goods and services by individuals or households rather than by the government or businesses.