A Forward Contract Used as a Cash Flow Hedge Will

question 1

Multiple Choice

A forward contract used as a cash flow hedge will be recorded as an asset if

• A)the holder is expecting to receive a payment as a result of the contract.
• B)the holder is accounting for the hedged instrument as a fair value hedge.
• C)the holder is hedging the net investment in a foreign entity.
• D)the holder is using the alternate accounting method and deferring all gains or losses from the hedge.

---

Definitions:

Howl

A poem written by Allen Ginsberg in 1955, known for its controversial discussion of homosexuality and critique of capitalism and conformity in the post-war United States.

Conformism

The behavior of aligning with group norms, values, and expectations, often at the expense of individuality or personal opinions.

UN Charter

A foundational treaty that established the United Nations in 1945 to promote international cooperation and to achieve peace and security.

Jacobo Arbenz Guzmán

The 25th President of Guatemala from 1951 until 1954, known for his progressive land reform policies, which eventually led to his overthrow in a coup orchestrated by the CIA.