Accounting Standard-Setting in the U

question 12

True/False

Accounting standard-setting in the U.S.is a technical process and thus little affected by political considerations.

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Definitions:

Journal Entries

The recordation of financial transactions in a company's accounting system, which includes a debit and credit entry for each transaction.

Cash Flow Hedge

A strategy used by companies to manage the risk associated with fluctuation in cash flow due to changes in foreign exchange rates, interest rates, or commodity prices.

Forward Contract

A contractual agreement to buy or sell a particular commodity or financial instrument at a pre-determined price at a future date.

Spot Rates

The existing market value at which one can buy or sell a currency for instant delivery.