Questions from Business Statistics

Q: Briefly explain how speculative derivatives transactions are treated from an accounting perspective

Briefly explain how speculative derivatives transactions are treated from an accounting perspective.

Q: One responsibility of senior management is to identify acceptable risk management strategies

One responsibility of senior management is to identify acceptable risk management strategies. Identify three categories of risk, focusing on broad classifications and not on specific types of risks.

Q: Identify and discuss five problems with regard to the application of FAS

Identify and discuss five problems with regard to the application of FAS 133.

Q: Suppose that a firm engages in a derivative transaction that qualifies for

Suppose that a firm engages in a derivative transaction that qualifies for fair value hedging. The firm holds a security and hedges it by selling a derivative. During the course of the hedge, the secu...

Q: Suppose that a firm plan to purchase an asset at a future

Suppose that a firm plan to purchase an asset at a future date. The forward price of the asset is $200,000. It hedges that purchase by buying a forward contract at a price of $205,000. During the hedg...

Q: Explain the advantages for senior management having detailed written policies for financial

Explain the advantages for senior management having detailed written policies for financial risk management.

Q: Define and explain what is meant by independent risk monitoring. How

Define and explain what is meant by independent risk monitoring. How can senior management improve independent risk monitoring?

Q: ACB, Inc., engages in a forward transaction and is applying

ACB, Inc., engages in a forward transaction and is applying fair value hedge accounting. ACB holds the underlying instrument and hedges it by selling this forward contract. During the hedge period, th...

Q: Explain the accounting of hedging currency translation of a firm’s foreign subsidiary

Explain the accounting of hedging currency translation of a firm’s foreign subsidiary.

Q: Explain the basic differences between open outcry and electronic trading systems.

Explain the basic differences between open outcry and electronic trading systems.