Free CTP Exam Braindumps (page: 29)

Page 29 of 234

A company enters into a cash flow hedge to offset fluctuations in the value of foreign currency transactions occurring in two years. How should the company record the gains and/or losses on the cash flow hedge in the current year?

  1. The hedged gains and losses are reported in comprehensive income.
  2. The hedged gains and losses are reported in current period income.
  3. The hedged gains and losses are reported in current period income together with the offsetting gains and losses of the foreign currency.
  4. The hedged gains and losses are reported in comprehensive income together with the offsetting gains and losses of the foreign currency.

Answer(s): A



The auditors of a private college are examining and auditing the college’s financial statements. The statements are not presented in accordance with GAAP. What should the auditors do?

  1. Issue a standard unqualified opinion.
  2. Not render an opinion.
  3. Base their opinion on GASB standards.
  4. Issue an adverse opinion.

Answer(s): D



Banks often control information flow, records and assets, therefore it is critical that banks have:

  1. backup systems and disaster recovery procedures
  2. controlled disbursement procedures.
  3. standard formats for electronic submission.
  4. timetables for service implementation.

Answer(s): A



Which of the following could be considered a weakness of a forecast derived by regression analysis?

  1. More than one factor may affect the event being measured.
  2. Seasonality cannot be incorporated into the forecast.
  3. A large amount of data is required.
  4. It is only valid for long-term forecasting.

Answer(s): C



Page 29 of 234



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