Answer:
B. The hedge is asymmetric.
Explanation:
Hedging refers to a technique or a mechanism whereby firms and individuals aim for risk reduction, arising out of uncertain and volatile business situations, which may result into a heavy loss.
For example, an exporter entering into a forward contract to eliminate or reduce the risk of arising out of a future situation wherein, future receipts denominated in a foreign currency, receivable at a future date, may be less than same receipts receivable at current spot exchange rate as on today.
Currency hedge ratio depicts the proportion of total exposure which is covered by hedge w.r.t the total exposure itself.
Asymmetrical hedge refers to covering an exposure by an opposite position wherein the chances of earning profits are higher than the losses current position can lead to. Such an hedge would be similar to covering a call option with a put option. Asymmetrical refers to being of dissimilar or non equal size. Here, it refers to the dissimilarity between prospective profits and losses.
Under a perfect hedge, the loss position in a scenario is completely covered i.e 100% by a prospective gain in other situation, with there being negative correlation between the two scenarios such as if scenario 1 yields a profit, scenario 2 would yield a loss and vice versa.
A pizza delivery person HAS to know some info about you to get to your address and more. However, if you have a restraining order against a certain delivery person, you may inform the company before ordering.
Answer:
1. 2
2. Journal Entry
3. Journal Entry
Explanation:
1. There are 2 number performance obligations in this contract.
2. Cash Dr, $95,000
To unearned sales revenue $93,100
To unearned discounted sales revenue $1,900
(Being unearned revenue is recorded)
Working Note:-
Sales revenue = 5,000 × $19.6
= $98,000
Coupon applied = $20,000 × (25% - 5%) × 50%
= $2,000
Sales revenue including discount
= $98,000 + ($20,000 × 20% × 50%)
= $100,000
Discount on sales
= $95,000 × ($2,000 ÷ $100,000)
= $1,900
3. Cash Dr, $95,000
To Unearned sales revenue $95,000
(Being unearned revenue is recorded)
The resource-based view differs from the institution-based view in that the resource-based view focuses on a firm's internal strengths and weaknesses.
Resources are all materials available in our environment that are technically accessible, economically feasible, culturally sustainable, and that help meet our needs and desires. point.
Resources are physical materials that people need and value, such as land, air, and water. Resources are characterized as renewable or non-renewable. Renewable resources are automatically renewed as they are consumed, while non-renewable resources have limited availability.
1a: Source or Support: Available Resources - Usually used in the plural. b : natural source of wealth or income - often used in the plural. c : Natural features or phenomena that improve the quality of human life. d : computable wealth - usually used in the plural.
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Cyclical deficit is the downfall of the business cycle, this usually occurs when the economy is beneath potential income. The formula for this is, CD= tax rate x ( potential deficit - actual deficit). Therefore, the cyclical deficit is $200. I hope this helps.
