Financial Accounting Fundamentals
Financial Accounting Fundamentals
6th Edition
ISBN: 9781260005042
Author: Wild
Publisher: MCG
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Chapter 9, Problem 10DQ
To determine

Explain the reason for recognizing warranty liabilities on the balance sheet as liabilities even when they are uncertain.

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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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