Item$3$

$2$points

Time Remaining $1$ hour $28$ minutes

$01$:$28$:$00$

Item$3$

Time Remaining $1$ hour $28$ minutes

$01$:$28$:$00$

Which of the following statements is true about hedge accounting under U$.$S$.$ GAAP?

Multiple Choice

Hedge accounting is only advantageous when a foreign currency depreciates between the transaction date and the payment date.

If a derivative is elected by the company not to be designated as a cash flow hedge, it must be accounted for as such.

Companies may choose whether to account for derivatives as cash flow hedges or fair value hedges.

If a derivative qualifies as a cash flow hedge, the hedging instrument is adjusted to fair value on each balance sheet date.