A Business Plans to Acquire a Forward Contract to Hedge

question 32

Multiple Choice

A business plans to acquire a forward contract to hedge a monetary liability. Which of the following statements about the forward contract is true?

• A)If the contract is acquired at a premium, a loss results, and if the contract is acquired at a discount, a gain results.
• B)If the contract is acquired at a premium, a gain results, and if the contract is acquired at a discount, a loss results.
• C)Since the contract is to hedge a monetary liability, a loss results, regardless of whether the contract is acquired at a premium or a discount.
• D)Since the contract is to hedge a monetary liability, a gain results, regardless of whether the contract is acquired at a premium or a discount.

Assess the effects of medications on vital signs and the necessary follow-up actions.

Implement correct procedures for vital sign measurement to ensure accuracy.

Evaluate the significance of changes in vital signs and the appropriate response strategies.

Understand the impact of patient positioning and environment on vital sign readings.

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Definitions:

Expense Accounts

Accounts used to record the consumption of economic benefits during the operational period, contributing to revenue generation.

Income Summary

An account used in the closing process that summarizes revenues and expenses for a period before transferring the balance to retained earnings.

Revenue Account

An account that tracks the income earned by a company from its normal business operations, excluding expenses.

Debit

The left side of an account.