Why is the size of the stack so important to the cash-flow effects of the stack-and-roll hedge but less important to the profit-and-loss effects when hedge accounting is used?
What will be an ideal response?
As the mountain of futures contracts are marked to market and/or expire, they have immediate cash flow consequences. By contrast, so long as the stack of futures contracts is being used to hedge a series of forward contracts, hedge accounting allows companies to consider the forward contracts and their hedges (i.e., the rolling mountain of futures contracts) together. Therefore, the gains or losses on the accumulation of forward positions are offset by the losses or gains on the mountain of futures market hedges.
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Which of the following is NOT a reason interpersonal communication is important?
a. Your ability to relate with other people is central to achieving professional excellence. b. Interpersonal communication helps you form professional connections with other coworkers, leaders, and clients. c. Your interpersonal relationships at work provide a supportive social system that will increase your job satisfaction. d. Your interpersonal communication will allow you to manipulate your interactions to your advantage.
A special type of resale store where merchandise is donated and proceeds go to charity is called a(n)
A. dollar store. B. extreme-value retailer. C. consignment shop. D. supercenter. E. thrift store.
Because the cost of specific inventory items is not usually practical to determine, it is necessary for management to select a cost flow assumption
Indicate whether the statement is true or false
When using a cost-based approach, once the cost of a good or service has been determined, additional factors need not be considered in establishing a selling price
Indicate whether the statement is true or false