Which of the Following Represents Three Criteria of Which All

question 13

Multiple Choice

Which of the following represents three criteria of which all must be met by a hedging relationship for it to qualify for hedge accounting?

• A) the hedging relationship consists only of eligible hedging instruments and eligible hedged items
• B) at the inception of the hedging relationship there is formal designation and documentation of the hedging relationship and the entity's risk management objective and strategy for undertaking the hedge
• C) the hedging relationship meets hedge effectiveness requirements
• D) all of the above

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Definitions:

Drug Habituation

A situation where increased exposure to a drug leads to reduced sensitivity or effect without physiological dependence.

Immunosuppression

A reduction of the effectiveness of the body's immune system, either by diseases, certain drugs, or medical procedures.

Conditioned Stimulus

An initially neutral stimulus which, upon being paired with an unconditioned stimulus, eventually elicits a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a response without prior learning or conditioning.