7) Which of the following might be the reason for a company to use hedge accounting?

a) hedge accounting is mandatory for hedges

b) to restore accounting symmetry

c) to minimize losses

d) to minimize risks

8) ABC has 1,000, $6, no par non-cumulative preferred shares outstanding. To compute income attributable to common shareholders, ABC needs to:

a) subtract $6,000 from net income regardless if preferred dividends are paid

b) add $6,000 to net income only regardless if preferred dividends are paid

c) add $6,000 to net income only if preferred dividends are paid

d) subtract $6,000 from net income only if preferred dividends are paid