Multiple Choice
A U.S. company has euro-denominated receivables that it hedges with a forward sale of euros. The U.S. dollar strengthens against the euro.
Which statement is true?
A) The gain on the receivables and the loss on the forward are reported in income.
B) The gain on the receivables and the loss on the forward are reported in other comprehensive income.
C) The loss on the receivables and the gain on the forward are reported in income.
D) The loss on the receivables and the gain on the forward are reported in other comprehensive income.
Correct Answer:
Verified
Correct Answer:
Verified
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