Which of the Following Statements Is True Concerning Hedge Accounting

question 23

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 speculative in nature.

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Definitions:

Goodness-Of-Fit

A statistical test used to determine how well sample data fits a distribution from a population with a normal distribution.

Unusual Results

Events or data points that significantly differ from the bulk of the data or from what is expected.

Null Hypothesis

In statistical hypothesis testing, it is the hypothesis that there is no effect or no difference and is the statement being tested against the alternative hypothesis.

Genetic Characteristics

Attributes, traits, or disorders determined by genes inherited from an individual's parents.