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Williams, Inc

Question 46

Multiple Choice

Williams, Inc., a U.S. company, has a Japanese yen account receivable resulting from an export sale on March 1 to a customer in Japan. The exporter signed a forward contract on March 1 to sell yen and designated it as a cash flow hedge of a recognized receivable. The spot rate was $.0094, and the forward rate was $.0095. Which of the following did the U.S. exporter report in net income?


A) Discount revenue.
B) Premium revenue.
C) Discount expense.
D) Premium expense.
E) Both a discount revenue and a premium expense.

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