VM Industries Imports Numerous Parts from India for Assembly in the USA

question 77

Multiple Choice

VM Industries imports numerous parts from India for assembly in the USA. What category of futures contract will likely be used to hedge this transaction?

• A) Foreign currency
• B) Metals and energy
• C) Interest rates
• D) Equity indexes

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Definitions:

Adjusted Trial Balance

A statement showing all balances of ledger accounts after adjustments, used to prepare financial statements.

Adjustments Column

A column in journals or ledgers where adjustments are made to correct or update account balances before the preparation of financial statements.

Unadjusted

Refers to figures or entries that have not been modified to reflect adjustments, corrections, or changes.

Adjusted

Adjusted generally refers to alterations made to financial statements or data to correct for discrepancies or to account for extraordinary events.