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NEW QUESTION: 1
Consider a two-year currency swap, with semi-annual settlements. It is fixed dollar rate for fixed yen rate swap. The initial exchange rate is 99 Yen to the dollar. Notional principal is $100 million. The fixed dollar rate is 6%. The fixed yen rate is 2%. Which answer best describes the changing currency exposures?
A. Neither party is taking on or shedding currency exposure in this example, because the cash flows are fixed.
B. The dollar payer is shedding yen exposure and/or going short in the yen.
C. The yen payer is shedding yen exposure and/or going short in the yen.
Answer: C

NEW QUESTION: 2

A. Option B
B. Option A
C. Option C
D. Option E
E. Option D
Answer: A,B

NEW QUESTION: 3

A. Option B
B. Option D
C. Option C
D. Option A
Answer: B

NEW QUESTION: 4
Confirmation is most likely to be a relevant form of evidence with regard to assertions about accounts
receivable when the auditor has concerns about the receivables:
A. Completeness.
B. Existence.
C. Classification.
D. Valuation.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "C" is correct. Confirmation of accounts receivable provides evidence that the customer and the
receivable exist.
Choice "A" is incorrect. Accounts receivable confirmations do not provide evidence regarding valuation,
since they do not indicate whether customers have the intent or the ability to pay.
Choice "B" is incorrect. Accounts receivable confirmations do not provide evidence regarding the
appropriate classification of receivables in the financial statements.
Choice "D" is incorrect. Accounts receivable confirmations are sent to recorded customers, so they do not
provide evidence regarding the possible omission of valid accounts (i.e., completeness).