An Entity Holding Both Financial Assets and Liabilities Is Allowed

question 21

Multiple Choice

An entity holding both financial assets and liabilities is allowed to offset and determine fair value on the net position as long as:
I they hold a net long position
II they hold a net short position
III they have a documented risk management strategy
IV the manage the group of net financial assets and liabilities on a net exposure basis
v.transactions are conducted in an orderly market

• A)I and III
• B)II and IV
• C)III and IV
• D)II and V

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Definitions:

Data Structure

Organized ways of storing and organizing data in a computer so that it can be used efficiently, including arrays, linked lists, stacks, queues, trees, and graphs.

User-Defined

User-defined refers to features, functions, or elements customized or defined by the user, offering flexibility to tailor systems or applications to specific needs or preferences.

Module-Defined

A characteristic or feature that is specified or determined by a particular module in a software system or hardware device.

Predefined

Refers to something that has been defined or set in advance before being used or implemented.