Advanced Accounting (Looseleaf)
Advanced Accounting (Looseleaf)
12th Edition
ISBN: 9780077632595
Author: Hoyle
Publisher: MCG
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Chapter 11, Problem 12P
To determine

Identify the appropriate answer for the given statement from the options provided.

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If you have a choice, at which point will you enter into such forward contracts for hedging purposes? Would you prefer hedging against expected cashflow (before you even sign a contract with any foreign company), against firm commitment (after you have signed the contract, but before delivery of goods) or against an account payable or account receivable (after delivery of goods)? Why?
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