A Discount or Premium on a Forward Contract Is Deferred

question 25

Multiple Choice

A discount or premium on a forward contract is deferred and included in the measurement of the related foreign currency transaction if the contract is classified as a:

• A) hedge of a net investment in a foreign entity.
• B) hedge of an exposed asset or liability position.
• C) hedge of an identifiable foreign currency commitment.
• D) contract acquired to speculate in the movement of exchange rates.

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Definitions:

Influence Others

The capacity to affect the behavior, development, or thinking of others through direct or indirect actions.

Recruit

The process of attracting, selecting, and appointing suitable candidates to fill vacant positions within an organization.

Replacement

The process of substituting a new or alternative for an existing employee, part, or component within an organization or system.

Social Skills

The abilities used to communicate and interact with others effectively.