Which of the Following Is NOT a Condition for Hedge

question 16

Multiple Choice

Which of the following is NOT a condition for hedge accounting to be applied?

• A) There must be formal designation and documentation of the hedging relationship at the inception of the hedge.
• B) The effectiveness of the hedge must be able to be reliably measured.
• C) The hedge must be expected to be effective
• D) For cash flow hedges, the forecast transaction must be highly probable.

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Definitions:

Body Mass

A measure of a person's weight in relation to their height, commonly used to assess if they are underweight, normal weight, overweight, or obese.

Overweight

A condition characterized by weighing more than what is considered normal or healthy for a certain height.

Diabetes

A chronic health condition where the body's ability to process blood glucose, commonly referred to as blood sugar, is impaired.

Drive

An internal motivational state that compels individuals towards certain actions or goals.