18. Fair value risks generally relate to which of the following? A) Risks relating to forecasted transactions B) Unrecognized firm commitments C) Risks relating to fluctuations in the market price of the company's own stock D) None of the above 19. Assume that our US-based company purchases 2,000 units of inventories from a UK supplier at 6/unit. To record the purchase, A) our conmpany will debit inventories and credit accounts payable for 12,000. B) our company will debit inventories and credit accounts payable for the SUS C) D) equivalent of 12,000. our company will not record the purchase of inventory until the payable is paid. Either A or B is current. 20. In the past decade, the SUS has A) strengthened with respect to the Euro (). B) remain unchanged with respect to the Euro (). C) weakened with respect to the Euro (). D) Both weakened and strengthened with respect to the Euro (e) 21. Current US GAAP requires the following accounting for financial derivatives: A) B) C) D) Financial derivatives are reported at historical cost. Financial derivatives are reported at fair value at each statement date with unrealized gains (losses) reflected in Accumulated Other Comprehensive Income. Financial derivatives are reported at fair value at each statement date with unrealized gains (losses) reflected in Net Income. Financial derivatives are only written down to reflect losses that are other than temporary 22. If our company borrows money with a foreign currency-denominated loan A) it must record the loan and the accrued interest at the current SUS value on each B) it must record the loan, but not the accrued interest, at the current SUS value on C) t must record the accrued interest, but not the loan, at the currentSUS value on D) No adjusting entries to reflect currency fluctuations need to be made. statement date. each statement date. each statement date