From the Perspective of a Corporate CFO, When Hedging a Payable

question 21

Multiple Choice

From the perspective of a corporate CFO, when hedging a payable versus a receivable

• A)credit risk considerations are more germane for a payable.
• B)credit risk considerations are more germane for a receivable.
• C)none of the above

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Definitions:

Financial Statement

Documents that present an organization's financial performance and position, including the balance sheet, income statement, and cash flow statement.

Normal Balance

The part of an account, whether debit or credit, that is used to log increases in the account's value.

Account Nature

Refers to the classification of an account as either an asset, liability, equity, revenue, or expense.

Recorded Voucher

A documented voucher that has been entered into a financial accounting system.