When an Item Is Deemed to Hedge a Net Investment

question 42

Multiple Choice

When an item is deemed to hedge a net investment in a foreign subsidiary, any gain or loss on the hedging items is recorded in _________________.

• A)Other Comprehensive income.
• B)Income.
• C)Other comprehensive income or income.
• D)Equity.

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Definitions:

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products.

Straight Rebuy

A purchasing scenario in business-to-business transactions where the buyer reorders an existing product or service without modifications or consideration of alternative suppliers.

New Buy

A buying situation in which a business customer is purchasing a product or service for the first time, often involving extensive decision-making.

Rugby Team

A group of players organized to compete in rugby, a team sport characterized by running with the ball in hand, passing, and tackling.