Which of the following is not a characteristic of a financial asset held for trading? a. It is acquired principally for the purpose of selling or repurchasing it in the near ter b. On initial recognition, it is part of a portfolio of financial assets that are managed together and for which there is evidence of a recent actual pattern of short-term profi taking. c. It is a derivative that is not designated as an effective hedging instrument. d. It is a derivative that is designated as an effective hedging instrument.

Which of the following is not a characteristic of a financial asset held for trading? a. It is acquired principally for the purpose of selling or repurchasing it in the near ter b. On initial recognition, it is part of a portfolio of financial assets that are managed together and for which there is evidence of a recent actual pattern of short-term profi taking. c. It is a derivative that is not designated as an effective hedging instrument. d. It is a derivative that is designated as an effective hedging instrument.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 12MCQ: When the market value of a companys available-for-sale securities is lower than its cost, the...

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