Multiple Choice
All of the following are examples of a cash flow hedge, except:
A) a forward contract to buy US$ hedging recognised borrowings in US$.
B) a forward contract to buy US$ hedging future interest payments on variable rate debt in US$.
C) a forward contract to sell US$ hedging a highly probable sale of inventory in US$.
D) a forward contract to buy US$ hedging an unrecognised firm commitment to purchase goods in US$.
Correct Answer:

Verified
Correct Answer:
Verified
Q5: A realised exchange difference arises:<br>A) when the
Q6: Hedge effectiveness is ascertained from:<br>A) the hedge
Q7: A decrease in the direct rate of
Q8: The formal documentation of a hedging relationship
Q9: All of the following assets can be
Q11: At the date of the transaction, a
Q12: Which exchange rate is used at the
Q13: If an Australian company enters a forward
Q14: AASB 121/IAS 21 requires that the financial
Q15: All the following items are 'monetary items'