Explain the Difference Between REA and Traditional Accounting Views of Data

question 21

Short Answer

Explain the difference between REA and traditional accounting views of data collection and storage.

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Definitions:

Forward Exchange Contract

An agreement to exchange currency at a future date at a predetermined rate.

Cash Flow Hedge

A type of financial hedge that protects against exposure to cash flow risk or uncertainty from variable cash inflows or outflows.

Spot Rate

The existing rate at which a certain currency is available for immediate purchase or sale.

Forward Contract

A financial derivative instrument between two parties to buy or sell an asset at a specified future time at a price agreed upon today.