What Is a "Hedge

question 23

Multiple Choice

What is a "hedge"?

• A)A financial instrument that is speculative and increases the risk for the company.
• B)An instrument that moves in the opposite direction to another financial asset or liability.
• C)An instrument that moves in the same direction as another financial asset or liability.
• D)A financial instrument that is prohibited by accounting standards under IFRS and ASPE.

Calculate and interpret equity multipliers.

Understand and calculate accounts receivable turnover and total sales.

Determine inventory turnover.

Analyze total asset turnover and its impact on company performance.

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Definitions:

Composite Volcanoes

Volcanoes constructed from multiple layers of lava flows, volcanic ash, and other volcanic debris, characterized by steep profiles and periodic explosive eruptions.

Lahars

Volcanic mudflows or debris flows that occur when volcanic materials become saturated with water and rapidly move down slopes.

Pyroclastic Column

A dense, vertical cloud of hot volcanic ash, gas, and debris that rises from a volcanic eruption, capable of causing widespread destruction.

Volcanic Ash

Fine particles of rock and glass created by volcanic eruptions.