A hedged item can be any of the following except:
A)an anticipated (forecasted)transaction.
B)an existing asset or liability on the company's books.
C)a past transaction.
D)a firm commitment.

Question

Quizplus · Accepted Answer

A hedged item must be an anticipated (forecasted) transaction, an existing asset or liability on the company's books, or a firm commitment. A past transaction cannot be hedged as it has already occurred and cannot be changed or accounted for in future financial statements.

A Hedged Item Can Be Any of the Following Except