Table 10-4 -Refer to Table 10-4. Taking into Account Private and External

question 175

Multiple Choice

Table 10-4
-Refer to Table 10-4. Taking into account private and external costs, total surplus in the market equilibrium amounts to

• A)$28.
• B)$39.
• C)$45.
• D)$51.

---

Definitions:

Hedged Item

An asset, liability, firm commitment, or anticipated transaction identified by an entity to manage risks through hedging activities.

Cash Flow Hedge

A form of hedge accounting that aims to offset exposures to variability in cash flows, attributable to a particular risk associated with a recognized asset or liability.

Forward Contract

A financial contract between two parties to buy or sell an asset at a specified future time at a price agreed upon at the time of the contract.

Net Method

is an accounting method for recording purchases where the purchase is recorded at net of any trade discounts received.