Which of the Following Statements About Hedge Accounting Is True

question 47

Multiple Choice

Which of the following statements about hedge accounting is true?

• A)Hedge accounting is mandatory.
• B)Hedge accounting is optional.
• C)Hedge accounting is applicable only if a receivable is being hedged.
• D)Hedge accounting is applicable only if a liability is being hedged.

---

Definitions:

Payables Policy

The guidelines a company follows regarding how and when it will pay its bills and invoices to creditors.

Collection Policy

A set of guidelines and procedures followed by a business to collect accounts receivable or outstanding debts from clients or customers.

Collection Policy

A collection policy outlines the procedures a company uses to collect accounts receivable, including timelines, communication strategies, and actions for overdue payments.

Accounts Receivables

The amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.