1)No expected credit loss is recognized on available-for-sale debt securities if the fair value is greater than amortized cost.

A True

B False

2)As a result of a(n) _________, a company has the right to receive 1,000 shares of Xenon Company stock in 3 months and has the obligation to pay $50 per share at that time.

A forward contract

B option contract

C fair value hedge

D cash flow hedge

3) Which of the following is not a general criteria for a special accounting for hedges?

A) Consistency of classification.

B) Effectiveness of the hedging relationship.

C) Designation.

D) Documentation of the hedging relationship and companys risk management objective.