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1. What is the purpose of using hedge accounting rather than normal accounting when reporting hedging activities? A. Report all hedge investments at fair value

1. What is the purpose of using hedge accounting rather than normal accounting when reporting hedging activities?

A. Report all hedge investments at fair value on the balance sheet.

B. Avoid reporting gains and losses on investments in financial derivatives.

C. Report the gains and losses on the hedge investment in income in the same period as the losses and gains on the hedged item.

D. Identify which investments hedge the companys currency risk.

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