江西财经大学高级财务会计国际学院题库chapter13Word格式.docx

江西财经大学高级财务会计国际学院题库chapter13Word格式.docx

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2）Ahighly-effectivehedgeofanexistingassetorliabilitythatisreportedonthebalancesheetwouldberecordedusing

A）ModifiedCashBasisAccounting.

B）CriticalTermHedgeAnalysis.

C）FairValueHedgeAccounting.

D）HedgeofNetInvestmentinForeignSubsidiary.

C

3）Whichofthefollowingisnotanapproachappropriateforhedgeaccounting?

A）CashFlowHedgeAccounting

B）CriticalTermHedgeAccounting

C）FairValueHedgeAccounting

D）HedgeofNetInvestmentinForeignSubsidiary

LO1,2

4）Ifafinancialinstrumentisclassifiedasacashflowhedge,then

A）itsgainsorlossesarereportedintheincomestatementifafiscalyear-endoccursbeforethesettlementdate.

B）itisclassifiedasaheld-to-maturityasset.

C）itdoesnotrequireanotionalamount.

D）itsgainsorlossesarereportedinthebalancesheetifafiscalyear-endoccursbeforethesettlementdate.

D

LO1

5）Whenacashflowhedgeisappropriate,theeffectiveportionofthegainorlossonthederivativeis

A）deferredusingothercomprehensiveincome.

B）recognizedimmediatelyatthetimetheagreementismade.

C）recognizedovertime,amortizedovertheperiodoftheagreement.

D）recognizedovertime,offsetbythefluctuationinthevalueofthehedgedassetorliability.

A

6）BarnesCompanyenteredintoaforwardcontractduringthecurrentyeartohedgetheriskofamaterialsupplycostincrease.Basedonthecurrentmarket,atyear-endthepresentvalueoftheestimatedamounttheywillhavetopayintenmonthsis$750,000.Whatentrywouldberecordedatyear-endclosing,assumingthatnoamountwasrecordedforthiscontractuntilthistime?

A）

ForwardContract（+A）

$750,000

OtherComprehensiveIncome（+SE）

B）

Earnings（+SE）

C）

OtherComprehensiveIncome（-SE）

D）

ForwardContract（+L）

LO3

Moderate

7）Aforwardcontractusedasacashflowhedgewillberecordedasanassetif

A）theholderisexpectingtoreceiveapaymentasaresultofthecontract.

B）theholderisaccountingforthehedgedinstrumentasafairvaluehedge.

C）theholderishedgingthenetinvestmentinaforeignentity.

D）theholderisusingthealternateaccountingmethodanddeferringallgainsorlossesfromthehedge.

8）Afairvaluehedgediffersfromacashflowhedgebecauseafairvaluehedge

A）cannotbeusedforfirmpurchaseorsalescommitments.

B）isnotrecordedunlessitisahighly-effectivehedge.

C）recordsgainsorlossesinthevalueofthederivativedirectlytoearningsofthecompany.

D）defersthegainsorlossesinthevalueofthederivativeusingOtherComprehensiveIncome.

9）Thepurchasepriceofanoptioncontractistypicallyrecordedas

A）anexpense.

B）anasset.

C）anamortizedcost.

D）acomponentofshareholdersequity.

10）TaydusCorporation,aU.S.corporation,soldgoodsonDecember2toacompanyoverseas,andisnowcarryingareceivabledenominatedineuros.Taydussigneda60-dayforwardcontractonthatsamedatetoselleuros.Thespotratewas$1.40onthedatetheysignedthecontractandthe60-dayforwardratewas$1.36.Attheendofthatmonthwhentheyclosedthebooksattheirfiscalyear-end,thespotratewas$1.42andthe30-dayforwardratewas$1.40.Assumethisisafairvaluehedge.Theforwardcontractwillnotbesettlednet.WhatwouldbereportedbyTaydusfortheyearendingDecember31?

A）Netexchangegain

B）Netexchangeloss

C）Deferredexchangegain

D）Deferredexchangeloss

Explanation:

B）Thespotrateincreased$.02,resultinginagainonthereceivable.

Theforwardrateincreased$.04,resultinginalargerlossontheforward,thustheyexperiencedanetexchangeloss.

LO4

11）CirtusCorporation,aU.S.corporation,placedanorderforinventoryfromaMexicansupplieronSeptember18whenthespotratewas$0.0840=1peso.Theinvoicepricewillbedenominatedinpesos.Atthattime,theyenteredintoa30-dayforwardcontract（designatedasafairvaluehedgeofthefirmcommitmenttopurchase）topurchase860,000pesosataforwardrateof$0.0810.OnOctober18whentheinventorywasreceived,thespotratewas$0.0890.AtwhatamountshouldtheinventorybecarriedonCirtus'

books?

A）$69,660

B）$72,240

C）$76,540

D）$860,000

A）Inventory=860,000×

.081=$69,660

12）Whenpreparingtheiryear-endfinancialstatements,theWarnerCompanyincludesafootnoteregardingtheirhedgingactivitiesduringtheyear.Whichofthefollowingisnotrequiredtobedisclosed?

A）Howhedgeeffectivenessisdeterminedandassessed

B）Thespecifictypesofrisksbeinghedged,andhowtheyarebeinghedged

C）Alternativehedgingoptionsdeclined

D）Thenetgainorlossreportedfortheperiodforfairvaluehedgesandwhereinthefinancialstatementsitisreported

LO5

13）InternationalaccountingstandardsdifferfromU.S.GenerallyAcceptedAccountingPrinciplesinthatInternationalstandards

A）requirethatfirmsaleorpurchasecommitmentsareaccountedforasfairvaluehedges.

B）requirethatfirmsaleorpurchasecommitmentsareaccountedforascashflowhedges.

C）statethatfirmsaleorpurchasecommitmentsmaynotbetreatedasahedgedtransaction.

D）permitfirmsaleorpurchasecommitmentstobeaccountedforaseitherfairvaluehedgesorcashflowhedges.

LO6

14）OnMay1,2011,ListingCorporationreceivesinventoryitemsfromtheirBulgariansupplier.Atthesametime,Listingsignedaforwardcontracttopurchase75,000Bulgarianlevinsixtydaystohedgetheinventorypurchaseat$0.738,the60-dayforwardrate.PaymentfortheinventorywillbedueinsixtydaysinBulgarianlev.Assumetheforwardcontractwillbesettlednetandthisqualifiesasafairvaluehedge.Therelatedexchangeratesareshownbelow:

Date

SpotRate

ForwardRate

toJune30

May1,2011

$0.7270

$0.7380

May31,2011

$0.7350

$0.7400

June30,2011

$0.7420

Assumingapresentvaluefactorof1forsimplicity,whatisthefairvalueofthisforwardcontractonMay31?

A）$150asset

B）$150liability

C）$375asset

D）$375liability

A）

Currentforwardrate:

75,000lev×

$0.7400$55,500

Contractedforwardrate:

$0.738055,350

Netchangeinvalue150

WithPV=1,Netchange=assetvalue

Usethefollowinginformationtoanswerthequestion（s）below.

OnNovember2,2011,BellamyCorporationsellsproducttotheirDanishcustomer.Atthesametime,Bellamysignedaforwardcontracttosell200,000Danishkroneinninetydaystohedgetheaccountreceivableat$0.1905,the90-dayforwardrate.Thereceivableisexpectedtobecollectedinninetydays.Assumetheforwardcontractwillbesettlednetandthisisafairvaluehedge.Therelatedexchangeratesareshownbelow:

toJanuary31

November2,2011

$0.1910

$0.1905

December31,2011

$0.1920

$0.1912

January31,2012

$0.1915

15）Assumingapresentvaluefactorof1forsimplicity,whatisthefairvalueofthisforwardcontractonNovember2?

A）$-0-

B）$100asset

C）$100liability

D）$38,100asset

16）Assumingapresentvaluefactorof1forsimplicity,whatisthefairvalueofthisforwardcontractonDecember31?

A）$160asset

B）$160liability

C）$140asset

D）$140liability

17）Assumingapresentvaluefactorof1forsimplicity,whatisthefairvalueofthisforwardcontractonJanuary31?

B）$60asset

C）$160liability

D）$200liability

OnDecember1,2011,ThomasCompany,aU.S.corporation,purchasesinventoryfromavendorinItalyfor400,000euros.Paymentisduein90days.Tohedgethetransaction,Thomassignsaforwardcontracttobuy400,000eurosin90daysat$1.3670.Thomasusesadiscountrateof6%（presentvaluefactorfor30days=.9950;

60days=.9901;

90days=.9851）.Assumetheforwardcontractwillbesettlednetandthisisacashflowhedge.Currencyexchangeratesareshownbelow:

toFebruary29

December1,2011