What Reports Are Affected by the Budgeting Process -

question 2

Multiple Choice

What reports are affected by the budgeting process -

• A)income statements
• B)balance sheets
• C)customer sales summary reports
• D)supplier purchases summary reports

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Definitions:

Fair Value Hedge

A hedge of the exposure to changes in fair value of an asset or liability or an identified portion of an asset or liability that is attributable to a particular risk.

Cash Flow Hedge

A form of hedge that aims to manage exposure to fluctuations in cash flows related to a particular risk, such as interest rates or foreign exchange rates.

Cash Flow Hedge

A type of hedge that protects against the exposure to variability in cash flows due to a particular risk such as interest rate changes.

Forward Rate

The predetermined price for a transaction that will occur at a specific future date, commonly used in foreign exchange and interest rate markets.