Which of the Following Statements Is True Concerning Hedge Accounting

question 81

Multiple Choice

Which of the following statements is true concerning hedge accounting?

• A) Hedges of foreign currency firm commitments are used for future sales only.
• B) Hedges of foreign currency firm commitments are used for future purchases only.
• C) Hedges of foreign currency firm commitments are used for current sales or purchases.
• D) Hedges of foreign currency firm commitments are used for future sales or purchases.
• E) Hedges of foreign currency firm commitments are entered into for speculative purposes.

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Definitions:

Janitor

A person employed to clean and maintain a building, such as an office, a school, or a residential complex.

Mailroom

A dedicated area in an organization where incoming and outgoing mail and packages are processed and distributed.

Independent Agent

An individual or entity that acts in their own interest, usually representing multiple companies in a non-exclusive manner.

Employee

An individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties.