Which of the following statements is true concerning hedge accounting?
A. Hedges of foreign currency firm commitments are used for future sales only.
B. Hedges of foreign currency firm commitments are used for future purchases only.
C. Hedges of foreign currency firm commitments are used for future sales or purchases.
D. Hedges of foreign currency firm commitments are used for current sales or purchases.
E. Hedges of foreign currency firm commitments are entered into for speculative purposes.
Answer: C
You might also like to view...
List and explain the four forms of psychographic studies
What will be an ideal response?
Which of the following statements is true of the corporate form of business?
A) The board of directors sets policy for the corporation and appoints the officers. B) Changes in the ownership of stock has a negative effect on the continuity of the corporation. C) Any stockholder may commit the corporation to a contract. D) It is easy for stockholders to lodge an effective protest against management.
Do employees give up their civil liberties in exchange for work?
What will be an ideal response?
In auditing a client's inventory, the auditors must be concerned with the detection of goods that are both damaged and obsolete.a. Why are the auditors concerned with detecting damaged and obsolete goods?b. How do the auditors test for damaged goods in the client's inventory?c. How do the auditors test for obsolete goods in the client's inventory?
What will be an ideal response?