A Transaction Gain or Loss on a Forward Contract Entered

question 23

Multiple Choice

A transaction gain or loss on a forward contract entered into as a hedge of an identifiable foreign currency commitment may be:

• A) included as a separate item in the stockholders' equity section of the balance sheet.
• B) recognized currently in the determination of net income.
• C) deferred and included in the measurement of the related foreign currency transaction.
• D) none of these.

---

Definitions:

Human Motivation

The psychological forces or processes that influence the direction, intensity, and persistence of an individual's goal-directed actions.

Procedural Injustice

The perception that the processes involved in decision making, resource allocation, or dispute resolution are unfair.

Counterproductive Work Behaviors

Actions by employees that harm or are intended to harm an organization or its members, such as theft, sabotage, or workplace incivility.

Inputs

Inputs refer to the resources, information, or efforts that are used or required to achieve a task, process, or project.