What Is "Hedge Accounting

question 33

Multiple Choice

What is "hedge accounting?"

• A) Any record keeping related to purchase, sale, or valuation of derivatives.
• B) Recording options and other derivatives on the Balance Sheet.
• C) Matching gains or losses from hedging with losses or gains from the risk being hedged.
• D) Using multiple accounting methods to offset the effect of foreign currency exchange.

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Definitions:

Modulator Pressure

The pressure within an automatic transmission's hydraulic system that helps control shift timing and quality.

Upshifts

The action or process of shifting a vehicle's transmission to a higher gear as speed or load increases.

Downshifts

The act of shifting a vehicle's transmission into a lower gear, increasing engine speed and providing more power or engine braking.

Governor Pressure

The hydraulic pressure in automatic transmissions that helps control gear shifts and is regulated by the vehicle's governor.