9. Assume that our company has an inventory of aluminum alloy that it will sell to a customer in 90 days and that you face the following market prices Spot Price $2.60 $2.57 0 Day Futures Price $2.55 90 days later... If we purchase a futures contract today, A) we will lock in a $O.05 loss. B) we will lock in a SO.05 gain. C) we will lock in a $O0.03 loss. D) we will lock in a $0.03 gain. 10. Which of the following best describes current GAAP with respect to the required reporting currency? A) A currency other than the U.S. dollar may be the reporting currency in financial B) C) D) statements Only the SUS may be the reporting currency in financial statements. Companies can change their reporting currency as much as they wish. Companies can never change their reporting currency. 11. Which of the following best describes the accounting for foreign currency-denominated receivables and payables? A) No gains or losses are recorded until the receivable is collected or the payable is paid. No gains or losses are recorded because there has been no cash effect. Companies are required to report the foreign-currency denominated receivables and payables at their current market value on the statement date, but no gain or loss is B) C) recognized in the income statement. Companies are required to accrue gains and losses on foreign currency- denominated receivables and payments as of the statement date. D) 12. Hedge accounting means that A) the financial derivative is reported on the balance at fair value, but no gains and B) the financial derivative is marked to market together with the asset (liability) to C) the financial derivative is marked to market together with the asset (liability) to D) the financial derivative is marked to market together with the asset (liability) to losses are recognized, thus reducing income volatility which it relates and unrealized gains and losses are always reflected in net income. which it relates and unrealized gains and losses on fair value hedges are immediately reflected in net income. which it relates and unrealized gains and losses on cash flow hedges are immediately reflected in net income