Which of the Following Is Probably Not an Example of the Use

question 69

Multiple Choice

Which of the following is probably not an example of the use of forward contracts by an MNC?​

• A)Hedging pound payables by selling pounds forward
• B)Hedging peso receivables by selling pesos forward
• C)Hedging yen payables by purchasing yen forward
• D)Hedging peso payables by purchasing pesos forward
• E)All of the above are examples of using forward contracts.

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Definitions:

Financing Activities

Transactions that involve raising funds for the company through borrowing or issuing equity.

Productive Capacity

The maximum output a system can produce over a specific period under normal conditions.

Income Taxes Payable

The amount of income taxes a company owes to the government that has not yet been paid.

Operating Activities

Transactions and events that affect the net income of a company, involving its primary operations.