Which of the following statements is true concerning hedge accounting?Hedges of foreign currency firm commitments are used for current sales or purchases.
Hedges of foreign currency firm commitments are speculative in nature.
Hedges of foreign currency firm commitments are used for future sales or purchases.
Hedges of foreign currency firm commitments are used for future purchases only.
Hedges of foreign currency firm commitments are used for future sales only.
Answers
Hedges of foreign currency firm commitments are used for future sales or purchases.
hedge accounting
Hedge accounting is a form of accounting in which inputs to change a security's fair value and its opposing hedge are regarded as one. Hedge accounting seeks to mitigate the volatility caused by the frequent adjustment to the value of a financial instrument, also known as fair value accounting or mark-to-market. This volatility is decreased by merging the instrument and the hedge into a single entry, which offsets the movements of the opposite. Hedge accounting adjusts the fair value of a securities and its opposing hedge with a single entry.
To know more about hedge accounting visit the link
#SPJ4
Related Questions
2. On January 2, 2017, heavy equipment costing $800,000 was purchased. The equipment had a life of 5 years and no salvage value. The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below: Tax Depreciation 2017 2018 2019 2020 Total $264,000 $360,000 $120,000 $56,000 $800,000 3. The enacted tax rates are 40% for all years. Instructions (a) Prepare a schedule comparing depreciation for financial reporting and tax purposes. (b) Determine the deferred tax (asset) or liability at the end of 2017.
Hubbard Industries just paid a common dividend, D0, of $2.00. It expects to grow at a constant rate of 3% per year. If investors require a 8% return on equity, what is the current price of Hubbard's common stock
Swift Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by $140,000 and will increase annual expenses by $88,000 including depreciation. The oil well will cost $465,000 and will have a $10,000 salvage value at the end of its 10-year useful life. Calculate the annual rate of return. (Round answer to 2 decimal places, e.g. 12.47.)
Denver company uses a job costing system. The work in process inventory on december 31 consisted of job no. 173 with a balance of $66,200. Job no. 173 has been charged with manufacturing overhead costs of $20,000. Denver allocates manufacturing overhead costs at a rate of 50% of direct labor cost. What was the amount of direct materials charged to job no. 173?
Answers
Answer: $30.10 per unit
Explanation:
Given that,
Production volume = 602,000 units per year
Market price = $34 per unit
Desired operating income = 17% of total assets
Total assets = $13,800,000
Total income = 17% of Total assets
= 0.17 × $13,800,000
= $2,346,000
Total sales = Market price × Production volume
= $34 per unit × 602,000 units
= $20,468,000
Target full product cost in total for the year:
= Total sales - Total income
= $20,468,000 - $2,346,000
= $18,122,000
Target full product cost per unit =
=
= $30.10 per unit
Answers
You would figure out the most cost-effective approach to send perishables back and forth. You would need to be aware of the purification that would appeal to this range of income levels the most. What the needs are for various products, the most cost-effective ones, and whether further purification is required. You should select a trustworthy overnight delivery service that offers the fewest corporate incentives to do so.
What is market strategies?
A marketing strategy is a long-term plan for attaining a business' objectives through an understanding of client needs and the development of a distinct and long-lasting competitive advantage. It includes everything, from choosing which channels to utilize to contact your customers to figuring out who they are.
Product, pricing, place, and promotion make up the four Ps. They serve as an illustration of a "marketing mix," or the collection of tools and techniques utilized by marketers to accomplish their marketing goals.
Thus, You would figure out the most cost-effective approach to send perishables back and forth.
For more information about market strategies, click here:
#SPJ2
Answer:
you would determine the best way to ship perishables back and forth with the most financial advantages. you would need to know what purification would sell best to this group of income levels. what the needs for varies products most cost effective and needed that would also call for further purification need. you would want to tap into a reliable overnight delivery carrier that gives the lowest corporate incentives to use
Answers
Answer:
None of the options is correct, given the facts in the question.
The appropriate answer is:
Debit Prepaid insurance $12,000
Credit Insurance expenses $12,000
(Reversal of erroneous posting to insurance expenses)
Debit Insurance expenses $3,000
Credit Prepaid insurance $3,000
(To record 6 months prepaid insurance amortization)
Explanation:
Prepaid insurance is a payment for insurance policy premium in advance, whose service has not been fully enjoyed.
Gibson Company paid $12,000 for a two-year insurance policy. This was erroneously recorded as an expense. This wrong posting has to be reversed for the purpose of audit trail, as provided by the first journal.
To determine the monthly amortization, simply divide $12,000 by 24 months to arrive $500 amortization monthly. Since we are adjusting for December 31, 2014 (6 months from June 1, 2014), the 2014 amortization will be $500 x 6 months = $3,000. This has to be adjusted for by applying the second journals above.
Answers
Answer:
i hope it helps u :)
Explanation:
In any market economy, business plays a huge role. Business is the engine of an economy. Business provides jobs that allow people to make money and goods and services that people can buy with the money they make. ... Most businesses provide people with jobs.
Answer:
Explanation:
In any market economy, business plays a huge role. Business is the engine of an economy. Business provides jobs that allow people to make money and goods and services that people can buy with the money they make. ... Most businesses provide people with jobs
Answers
Answer & Explanation:
a. MPC = 0.50; Change in consumption spending = $345.8 billion
According to multiplier formula,
Change in real GDP/ Change in consumption spending = 1/(1-MPC) = 1/(1-0.5) = 1/0.5 = 2
So, Change in GDP = Change in consumption spending*2 = (345.8)*2 = $691.6 billion
Change in GDP = $691.6 billion
b. Change in investment = -$100
According to multiplier formula,
Change in real GDP/ Change in investment = 1/(1-MPC) = 1/(1-0.5) = 1/0.5 = 2
So, Change in GDP = Change in investment*2 = (-100)*2 = -200
So, total change in GDP = 691.6 - 200 = $491.6 billion
Change in real GDP = $491.6 billion
c. Percentage change in real GDP = (Change in Real GDP/GDP at the end of 2014)*100 = (491.6/15,982.3)*100 = 3.08%
Cost of goods sold 202,300
Gross profit 244,400
Expenses (including $16,300 interest and $20,800 income taxes) 70,800
Net income $ 173,600
Additional information:
1. Common stock outstanding January 1, 2020, was 27,200 shares, and 38,600 shares were outstanding at December 31, 2020.
2. The market price of Kingbird stock was $15 in 2020.
3. Cash dividends of $21,700 were paid, $6,500 of which were to preferred stockholders.
Compute the following measures for 2020.
(a) Earnings per share
(b) Price-earnings ratio
(c) Payout ratio
Answers
Answer and Explanation:
The computation is shown below:
a. Earning per share
= (Net income - preferred dividend) ÷ (Weighted average number of outstanding shares)
= ($173,600 - $6,500) ÷ (27,200 shares + 38,600 shares) ÷ 2
= $167,100 ÷ 32,900 shares
= $5.08 per share
b. Price earnings ratio = Market price ÷ Earning per share
= $15 / $5.08
= 2.95
c. Payout ratio = Dividend paid ÷ Net income
= ($21,700 - $6,500) ÷ ($173,600)
= 8.76%