Give 4 Examples of Cash Flow Hedges

question 11

Essay

Give 4 examples of cash flow hedges:

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Definitions:

FIFO Cost Flow

An inventory valuation method (First In, First Out) where goods first purchased or produced are sold or used first.

Income Tax Expense

The amount of money a company is obligated to pay in income taxes for a given fiscal period.

Net Income

The amount of earnings remaining after all expenses, taxes, and dividends have been deducted from total revenue, often referred to as net earnings or net profit.

LIFO Cost Flow

An inventory valuation method that assumes the last items placed into inventory are the first ones to be sold.