Question: 3. If a derivative does not qualify for hedge accounting: A) Changes in its fair value are reported in other comprehensive income. B) Changes in

3. If a derivative does not qualify for hedge accounting: A) Changes in its fair value are reported in other comprehensive income. B) Changes in its fair value are reported in income. /C) Gains and losses are reported only when realized. D) It is not reported on the balance sheet. 4. A company uses futures to hedge a firm commitment to buy inventory. Which statement is true concerning the hedge? A) The company takes a short position in Yutures and records changes in their value in OCI. B) The company takes a long position in futures and records changes in their value in income. C) The company takes a short position in futures and records changes in their value in income. D) The company takes a long position in futures and records changes in their value in OCI

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