On December 1, 2013, Joseph Company, a U

question 32

Multiple Choice

On December 1, 2013, Joseph Company, a U.S. company, entered into a three-month forward contract to purchase 50,000 pesos on March 1, 2014, as a fair value hedge of a foreign currency denominated account payable. The following U.S. dollar per peso exchange rates apply: Joseph's incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent is .9803. Which of the following is included in Joseph's December 31, 2013 balance sheet for the forward contract?

• A) $5,146.58 asset.
• B) $5,146.58 liability.
• C) $500.00 liability.
• D) $490.15 asset.
• E) $490.15 liability.

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Definitions:

Computed F Statistic

A statistic calculated in ANOVA tests to determine if the means of several groups are equal, by comparing the variance between groups to the variance within groups.

SSR

Sum of Squares due to Regression, a measure used in statistical modeling to quantify the variance explained by a regression model, indicating model fit.

SSE

Sum of Squared Errors, a measure used to indicate the discrepancy between the data and an estimation model.

SSR

Sum of Squared due to Regression, indicates the proportion of variance in the dependent variable that is predictable from the independent variable(s).