SAP Exam C_S4FTR_2021 Topic 6 Question 47 Discussion

Actual exam question for SAP's C_S4FTR_2021 exam

Question #: 47
Topic #: 6

[All C_S4FTR_2021 Questions]

You implement hedge management and hedge accounting.Which of the following describes the hypothetical derivative?

AIt is used to simulate accounting entries for hedging instruments.

BIt is the link between the hedged item and hedging instrument.

CIt is the representation of the hedging instrument.

DIt is the representation of the hedged item.

Show Suggested Answer

Suggested Answer: A

by Merlyn at Sep 16, 2024, 11:59 AM

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Theodora

2 days ago

Hmm, the way I see it, the hypothetical derivative is the link between the hedged item and the hedging instrument. Connects the dots, you know?

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Sophia

11 days ago

I'm not sure about that. I think the hypothetical derivative is the link between the hedged item and hedging instrument.

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Lindy

13 days ago

I agree with Barabara. It makes sense that the hypothetical derivative would be used for that purpose.

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Barabara

15 days ago

I think the hypothetical derivative is used to simulate accounting entries for hedging instruments.

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Annice

17 days ago

Ooh, this one's tricky! I think the hypothetical derivative is the representation of the hedging instrument. Gotta love those accounting technicalities, am I right?

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