Choice "A" is correct. Derivatives will qualify for hedge accounting treatment (changes in value are presented as either deferred outflows of resources or deferred inflows of resources) if they are effective. High effectiveness describes the high degree to which fluctuations in the fair value or cash flows of a hedge and a hedged item offset. Choice "c" is incorrect. Hedge accounting treatment is contingent upon effectiveness, not the use of clearinghouses.Choice "d" is incorrect. Derivatives qualifying for hedge accounting may be used to mitigate risks associated with fluctuations in cash flows as well as fair values.Choice "b" is incorrect. Derivatives qualifying for hedge accounting may be used to mitigate risks associated with fluctuations in fair values as well as cash flows.