Financial derivatives are powerful tools that can be used by management for purposes of:
A) speculation.
B) hedging.
C) human resource management.
D) A and B above
Answer: D
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Successful businesses have learned that unethical behavior
a. is sometimes required when persuading people in lower socioeconomic groups. b. is sometimes justified when the desired action is achieved. c. is always followed by negative legal consequences. d. is not good for business in the long run.
Spartan Company purchased interior decoration material from Egypt for 100,000 Egyptian pounds on September 5, 20X8, with payment due on December 2, 20X8. Additionally, on September 5, Spartan acquired a 90-day forward contract to purchase 100,000 Egyptian pounds of E£ = $.1850. The forward contract was acquired to manage the exposed net liability position in Egyptian pounds, but it was not designated as a hedge. The spot rates were: September 5, 20X8E£1 =$0.1835 December 2, 20X8E£1 =$0.1865 Based on the preceding information, in the entry made on December 2nd to revalue foreign currency receivable to current equivalent U.S. dollar value,
A. Foreign Currency Transaction Gain will be credited for $150. B. Other Comprehensive Income will be credited for $300. C. Accounts Payable will be debited for $18,350. D. Foreign Currency Units will be debited for $18,500.
Which of the following formulas is used to determine Fixed Asset Turnover?
A) fixed assets/gross sales B) cost of goods sold/fixed assets C) gross sales/fixed assets D) net sales/fixed assets E) fixed assets/net sales
Are all increases to cash from financing activities the result of a favorable situation?
A) Yes, an increase to cash is always good. B) No, cash could increase in this category as a result of replacing long-term assets. C) Yes, this increase would reflect the results of the company's daily activities. D) No, an increase in long-term debt might be the result of an unfavorable situation.