Chapter 7, Problem 7E

Hosung Company's cash account adjusted ledger balance as of August 31 Accounting 100 chapter 6

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?

Please provide correct answer general accounting