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REFERENCE: Ref.09_03 Car Corp.(a U.S.-Based Company)sold Parts to a Korean Customer on Customer

question 8

Multiple Choice

REFERENCE: Ref.09_03
Car Corp.(a U.S.-based company) sold parts to a Korean customer on December 16,2008,with payment of 10 million Korean won to be received on January 15,2009.The following exchange rates applied:
SHAPE \* MERGEFORMAT
$REFERENCE: Ref.09_03 Car Corp.(a U.S.-based company) sold parts to a Korean customer on December 16,2008,with payment of 10 million Korean won to be received on January 15,2009.The following exchange rates applied: SHAPE \* MERGEFORMAT -Which of the following statements is true concerning hedge accounting? A) Hedges of foreign currency firm commitments are used for future sales only. B) Hedges of foreign currency firm commitments are used for future purchases only. C) Hedges of foreign currency firm commitments are used for current purchases or sales. D) Hedges of foreign currency firm commitments are used for future sales or purchases. E) Hedges of foreign currency firm commitments are speculative in nature.$
-Which of the following statements is true concerning hedge accounting?

Definitions:

Classical Conditioning

A learning process that involves pairing a previously neutral stimulus with an unconditioned stimulus to elicit a conditioned response.

Phobias

An intense, irrational fear of specific objects, situations, or activities that poses little to no actual danger.

Exposure Therapy

A psychological treatment method that involves confronting feared or traumatic memories, objects, or situations directly to reduce their associated anxiety.

Obsessive-Compulsive Disorder

A psychiatric condition marked by persistent, intrusive thoughts (obsessions) and repetitive actions (compulsions).