Which of the Following Is True for Futures, but Not

question 134

Multiple Choice

Which of the following is true for futures, but not for forwards?

• A) actual delivery
• B) no transactions costs
• C) self-regulating market
• D) None of these are correct.

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Definitions:

Manufacturing Overhead

Refers to all indirect costs associated with manufacturing a product, including costs related to factory equipment maintenance, utilities, and quality control.

Debit Side

The left side of an account in double-entry bookkeeping, used to record increases in assets, expenses, and losses or decreases in liabilities, equity, and revenue.

Overapplied Overhead

Occurs when the overhead allocated to products or services exceeds the actual overhead costs incurred.

Australian Accounting Standards

The set of principles and requirements that guide financial reporting and accounting practices in Australia, ensuring consistency and transparency.