When is a derivative also an accounting hedge? When is it not also an accounting hedge? Can
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
A derivative is a hedge when the firm bears a risk such that the change in the value of the derivati...View the full answer
Answered By
Gaurav Soni
Teaching was always an area where I can pursue my passion. I used to teach my friends and junior during my school and college life. After completing my professional qualification (chartered accountancy) and before joining my job, I also joined an organization for teaching and guidance to my juniors. I had also written some articles during my internship which later got published. apart from that, I have also given some presentations on certain amendments/complex issues in various forms.
Linkedin profile link:
https://www.linkedin.com/in/gaurav-soni-38067110a
5.00+
7+ Reviews
13+ Question Solved
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
Question Posted:
Students also viewed these Accounting questions
-
a. Suppose that Schuyler faces the choice of whether to take a gamble that results in $120 with probability 0.50, and -$100 with 0.50 probability. Suppose that Schuyler's preferences can be...
-
When evaluating whether accounting estimates made by management are reasonable, the audit team would be most interested in which of the following? a. Key factors that are consistent with prior...
-
When evaluating whether accounting estimates made by management are reasonable, auditors would be most interested in which of the following? a. Key factors that are consistent with prior periods. b....
-
Consider the graph of a function g(x). g(x) 5 f 3 2 1 2 3 4 5 6 Find the point c at which the function has a jump discontinuity but is right-continuous. C = What value should be assigned to g(c) to...
-
The dollar cost of debt for Javelin Consulting, a Canadian research firm, is 7.5%. The firm faces a tax rate of 30% on all income, no matter where it is earned. Managers in the firm need to know its...
-
Put each of the following syllogisms into standard form, name its mood and figure, and test its validity using a Venn diagram: Some mammals are not horses, for no horses are centaurs, and all...
-
Identify characteristics of partnerships and similar organizations. AppendixLO1
-
Peru Industries began operations on January 1, 2014. During the next two years, the company completed a number of transactions involving credit sales, accounts receivable collections, and bad debts...
-
Assume you purchased a stock at the beginning of a year for $50 per share, received a dividend of $2 per share during the year, and then sold the stock at the end of the year for $50. What was your...
-
On June 30, 2011, the Able, Baker, and Charlie partnership had the following fiscal year-end balance sheet: The percentages shown are the residual profit and loss sharing ratios. The partners...
-
Reporting marketable securities available for sale at fair value on the balance sheet but not including the unrealized holding gains and losses in income is inconsistent and provides an opportunity...
-
Distinguish between a fair value hedge and a cash flow hedge.
-
The concepts of accuracy and precision are not always easy to grasp. Here are two sets of studies: (a) The mass of a secondary weight standard is determined by weighing it on a very precise balance...
-
In a fixed time and budget project, the customer wants the development of a core component to be based on agile practices, as the final scope of the requirement has not yet been fully developed. The...
-
1. Ace Pizzeria, a manufacturer of frozen pizzas, computes its predetermined overhead rate annually based on machine hours. At the beginning of the year, the company estimated that 165,000 machine...
-
From a group of 13 boys and 9 girls, a committee of 5 students is chosen at random. a. The probability that all 5 members on the committee will be girls is (Type an integer or a simplified fraction.)...
-
On December 1, 2020, Cream Ale Ltd. receives $1,800 in advance for an agreement to brew beer during the months of December, January, and February. What is the revenue recognized under accrual...
-
A survey shows that of 100 nurses, 75 play at least soccer, 95 play at least softball, and 50 play both soccer and softball. Is this possible? Step one: Understand the problem and organize the given...
-
As a member of a new product team with your company, you are working to develop an electric car jack that would make changing tyres for a car easier. You are considering conducting a test market for...
-
If |62x|>9, which of the following is a possible value of x? A. 2 B. 1 C. 0 D. 4 E. 7
-
What is the present value of an annuity that pays $200 per month for 5 years if money is worth 6% compounded monthly?
-
You have the opportunity to invest $10,000 in one of two companies from a single industry. The only information you have follows. The word high refers to the top third of the industry; average is the...
-
You have the opportunity to invest $10,000 in one of two companies from a single industry. The only information you have is shown here. The word high refers to the top third of the industry; average...
-
The price/earnings ratio provides important information concerning the stock markets assessment of the growth potential of a business. The following are price/earnings ratios for selected companies...
-
Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An...
-
Trey is single and has no qualifying child. His adjusted gross income is $12,355. In order to claim the Earned Income Tax Credit, he must meet which of the following requirements? He cannot be the...
-
Caspian Sea Drinks needs to raise $74.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.69 next year, which will grow at 3.45% forever and the...
Study smarter with the SolutionInn App