A ________ Hedge Refers to an Offsetting Operating Cash Flow

question 42

Multiple Choice

A ________ hedge refers to an offsetting operating cash flow such as a payable arising from the conduct of business.

• A) financial
• B) natural
• C) contractual
• D) futures

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Definitions:

Cost of Goods Sold

The cost of goods sold (COGS) measures the direct costs associated with the production of goods sold by a company, including material and labor expenses.

Quarterly Financial Statements

Financial reports issued by a company every three months to provide insight into its financial health and performance.

Publicly Traded Companies

Companies whose shares are traded openly on stock exchanges, allowing investors to buy and sell shares.

Operating Segment

A component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses related to transactions with other components of the same enterprise.