All asset accounts and equity accounts increase with a debit
Indicate whether the statement is true or false
FALSE
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In addition to eliminating internal barriers to trade, members of a customs union agree to the establishment of common external tariffs
Indicate whether the statement is true or false
The accrual basis of accounting recognizes expenses when cash is paid.
Answer the following statement true (T) or false (F)
A company enters into a futures contract with the intent of hedging an expected purchase of some equipment from a German company for DM350,000 on December 31 . The contract requires that if the U.S. dollar value of DM700,000 is greater than $350,000 on December 31 . the company will receive the difference. Alternatively, if the U.S. dollar value is less than $350,000, the company will pay the
difference. Which of the following statements is correct regarding this contract? a. The Deutsche mark futures contract effectively hedges against the effect of exchange rate changes on the U.S. dollar value of the Deutsche mark commitment. b. The futures contract exceeds the amount of the commitment and thus hedges movements in the Deutsche mark exchange rate. c. The futures contract is a contract to sell Deutsche marks at a fixed price. d. The extra DM350,000 would be accounted for as a speculative investment.
"Would you prefer the 16-inch or 12-inch hedge clippers?" Which type of close is being used?
A. Double-yes B. Assumptive C. Minor-points D. Forestalling E. T-account