10. What is the benefit of the accounting treatment for cash flow hedges? 3 a. It keeps changes in the fair value of the hedge from creating volatility in earnings since changes in the fair value of the hedged instrument are not yet reported in earnings. b. It helps minimize reported liabilities on the balance sheet. c. It reduces the effect of the ineffective portion of cash flow hedges on reported other comprehensive income until the hedged asset or liability can be sold. 5