Forward exchange contracts may be used to: Which of the following general types
ID: 2477206 • Letter: F
Question
Forward exchange contracts may be used to: Which of the following general types of transactions could be a foreign currency transaction? For accounting purposes, which of the following are forward contracts? Which one of the following is not associated with forward contracts? The contract may require a future purchase or sale. The contract provides for using the at the date the contract is fulfilled. The contract may permit a future purchase or sale. The contract specifies the subject matter of the exchange.Explanation / Answer
22.Forward Exchange contract may be used to Ans.No. Hedge Risk Speculate C Yes No 23.Which of the following general types of transactions could be a foreign currency transaction? Ans. No.. Operating Transactions Forward Exchange Contract Transaction A Yes Yes (As it can be settled in cash or delivery) 24. For accounting purpose which of the following are forward contracts Ans No. Foreign Currency Forward Exchange Contract Foreing Currency Option Contract B Yes No 25. Which one of the following is not associated with forward contracts. Ans.B: The contract provides for using the market price at the date the contract is fulfilled.