Question

1. A Canadian company is billed in CNY but pays in USD. It buys a USD/CNY based on the current Chinese invoice. At settlement, the company pays supplier in USD and must settle with the counterparty for change in FX rate. a) Non-deliverable option (NDO) b) Non-deliverable forward (NDF) c) Plain vanilla option contracts d) Forward rate agreement (FRA) 2. Which ASC topic helps determine the real market price of an asset, especially in volatile or illiquid markets? a) Topic 815 b) Topic 820-10 c) Topic 830 Market price can be found without guidance. 3. If accounting treatment of hedge transactions does not meet tax authority requirements, the organization may not be able to treat from derivative holdings as a) gains/losses; an offset to operational gains/losses b) fair value; the current market value c) fair value; derivatives on financial statements d) gains/losses; hedges

          1. A Canadian company is billed in CNY but pays in USD. It buys a USD/CNY based on the current Chinese invoice. At settlement, the company pays supplier in USD and must settle with the counterparty for change in FX rate. a) Non-deliverable option (NDO) b) Non-deliverable forward (NDF) c) Plain vanilla option contracts d) Forward rate agreement (FRA) 2. Which ASC topic helps determine the real market price of an asset, especially in volatile or illiquid markets? a) Topic 815 b) Topic 820-10 c) Topic 830 Market price can be found without guidance. 3. If accounting treatment of hedge transactions does not meet tax authority requirements, the organization may not be able to treat from derivative holdings as a) gains/losses; an offset to operational gains/losses b) fair value; the current market value c) fair value; derivatives on financial statements d) gains/losses; hedges

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