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.

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