Reference no: EM131335824

Question 1

The company you work for has a large amount of disposable cash and very little debt on its books. The board of directors has expressed an interest in taking this money and investing in equity and debt securities of other companies. Please explain the characteristics of each type of security and how your company will need to record and value these on their books.

Question 2

Hedging foreign currency is a concept that serves as a stabilizing factor when dealing with the global economy and transactions that are computed and fulfilled in a foreign currency.

However, hedging is used in many other situations than foreign currency. Conduct research to get a firm grasp on the concept of hedging. Feel free to research hedging in the stock market, futures market, or any other aspect of the business world that uses hedging as a risk offset.
In your own words, define hedging? Why is it important that you understand this concept? How is this concept utilized in the accounting industry?

Question 3

Many companies believe that only product engineers should be involved in the design of product. Do you feel that accountants should be allowed to participate in the design process? What can the accountant contribute to the process? List other team players that you feel would be good contributors to the design process.