.
A) $10,500 loss
B) $10,500 gain
C) $ 1,750 loss
D) $ 3,850 loss
E) No gain or loss should be recognized.
Rate this question:
A) $ 5,500.
B) $16,949.
C) $18,182.
D) $17,241.
E) $16,667.
Rate this question:
A) The price a foreign currency can be purchased or sold today.
B) The price today at which a foreign currency can be purchased or sold in the future.
C) The forecasted future value of a foreign currency.
D) The U.S. dollar value of a foreign currency.
E) The Euro value of a foreign currency.
Rate this question:
A) 1 and 3
B) 2 and 4
C) 1 and 2
D) 1, 3, and 4
E) 1, 2, 3, and 4
Rate this question:
Option 1
Option 2
Option 3
Option 4
Rate this question:
A) $ 0.
B) $28,000.
C) $24,000.
D) $25,000.
E) $ 2,000.
Rate this question:
A) If the foreign currency appreciates, a foreign exchange gain will result.
B) If the foreign currency depreciates, a foreign exchange gain will result.
C) No foreign exchange gain or loss will result.
D) If the foreign currency appreciates, a foreign exchange loss will result.
E) If the foreign currency depreciates, a foreign exchange loss will result.
Rate this question:
A) If the foreign currency appreciates, a foreign exchange gain will result.
B) If the foreign currency depreciates, a foreign exchange gain will result.
C) No foreign exchange gain or loss will result.
D) If the foreign currency appreciates, a foreign exchange loss will result.
E) Any gain or loss will be included in comprehensive income.
Rate this question:
A) Recognized foreign currency denominated assets and liabilities.
B) Unrecognized foreign currency firm commitments.
C) Forecasted foreign currency denominated transactions.
D) Net investment in foreign operations.
E) Deferred foreign currency gains and losses.
Rate this question:
A) The transaction is denominated in U.S. dollars.
B) The option strike price to sell foreign currency is less than the spot rate of the currency.
C) The option strike price to buy foreign currency is less than the spot rate of the currency.
D) The foreign currency appreciated in value relative to the U.S. dollar.
E) The foreign currency depreciated in value relative to the U.S. dollar.
Rate this question:
A) $1,100 loss.
B) $1,100 gain.
C) $6,900 loss.
D) $6,900 gain.
E) $8,000 gain.
Rate this question:
A) I only
B) I and II
C) II only
D) II and III
E) I, II, and III
Rate this question:
A) $ 0.
B) $36,000.
C) $48,000.
D) $10,000.
E) $12,000.
Rate this question:
A) $6,000.
B) $4,500.
C) $3,000.
D) $7,500.
E) $1,500.
Rate this question:
A) One-transaction perspective; defer foreign exchange gains and losses.
B) Two-transaction perspective; accrue foreign exchange gains and losses.
C) Three-transaction perspective; defer foreign exchange gains and losses.
D) One-transaction perspective; accrue foreign exchange gains and losses.
E) Two-transaction perspective; defer foreign exchange gains and losses.
Rate this question:
A) $20,000.
B) $20,100.
C) $25,000.
D) $27,000.
E) $28,000.
Rate this question:
A) Cash 1,800 Foreign Currency Option 1,800
B) Forward Contract 1,800 Cash 1,800
C) Foreign Currency Option 1,800 Gain on Foreign Currency 1,800
D) Loss on Foreign Currency 1,800 Cash 1,800
E) Foreign Currency Option 1,800 Cash 1,800
Rate this question:
A) $ 500 (gain).
B) $ 500 (loss).
C) $ 200 (gain).
D) $ 200 (loss).
E) $ - 0 -
Rate this question:
A) $ 200.
B) $ 295.
C) $ 495.
D) $ 500.
E) $ 9,300.
Rate this question:
A) As a debit to discount expense.
B) As a debit to amortization expense.
C) As a debit to accumulated other comprehensive income.
D) As a debit impact on net income, as a result of the hedge.
E) As a decreases to sales.
Rate this question:
A) Derivatives are reported on the balance sheet only as an asset.
B) Derivatives are reported on the balance sheet only as a liability.
C) Changes in derivative cost basis are recorded in the asset value.
D) Changes in derivative fair value are included in comprehensive income.
E) Changes in derivative cost basis are recorded in the liability value.
Rate this question:
A) Discount revenue.
B) Premium revenue.
C) Discount expense.
D) Premium expense.
E) Both discount revenue and premium expense.
Rate this question:
A) $2,000.
B) $2,100.
C) $2,500.
D) $2,700.
E) $2,800.
Rate this question:
A) $138,000.
B) $136,500.
C) $145,500.
D) $141,000
E) $142,500.
Rate this question:
A) $ 2,000 loss.
B) $ 2,000 gain.
C) $10,000 gain.
D) $14,000 loss.
E) $ 14,000 gain.
Rate this question:
A) $ 4,000.
B) $ 5,000.
C) $10,000.
D) $12,000.
E) $14,000.
Rate this question:
A) $1,800.00 decrease.
B) $1,760.60 decrease.
C) $2,240.40 decrease.
D) $1,660.40 increase.
E) $2,240.60 increase.
Rate this question:
A) Utilized to adjust the derivative asset.
B) Recognized immediately as a gain or loss in net income.
C) Recognized as a loss in other comprehensive income.
D) Recognized as a gain in other comprehensive income.
E) Recognized as a gain or loss in net income at a later date.
Rate this question:
A) Forward contracts used as a fair value hedge of a firm commitment.
B) Options used as a fair value hedge of a firm commitment.
C) Option contract cash flow hedge of a forecasted transaction.
D) Forward contract cash flow hedges of a forecasted transaction.
E) Forward contracts used to hedge a foreign currency denominated liability.
Rate this question:
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