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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic: Investment
Transcribed Image Text: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 term.
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 profit
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.
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