Under Accounting Standards for Private Enterprises, Which of the Following

question 40

Multiple Choice

Under accounting standards for private enterprises, which of the following can be used as hedging instruments?

• A)Options
• B)Forward contracts
• C)Futures contracts
• D)Currency swaps

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Definitions:

Government Purchases

Expenditures by the government sector on goods and services intended to satisfy public consumption and investment demands.

Inventory

The total amount of goods and materials held in stock by a business, warehouse, or store.

Gross Domestic Product

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period of time.