As used in international accounting, a “hedge” is: A)a business transaction made to reduce the exposure of foreign exchange risk. B)the legal barrier between the various divisions of a multinational company. C)the loss in US$ resulting from a decline in the value of the US$ relative to foreign currencies. D)one form of foreign direct investment.
As used in international accounting, a “hedge” is: A)a business transaction made to reduce the exposure of foreign exchange risk. B)the legal barrier between the various divisions of a multinational company. C)the loss in US$ resulting from a decline in the value of the US$ relative to foreign currencies. D)one form of foreign direct investment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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As used in international accounting, a “hedge” is:
A)a business transaction made to reduce the exposure of foreign exchange risk.
B)the legal barrier between the various divisions of a multinational company.
C)the loss in US$ resulting from a decline in the value of the US$ relative to foreign currencies.
D)one form of foreign direct investment.
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