Novation in Futures Exchange Is the Process of Setting Up

question 26

True/False

Novation in futures exchange is the process of setting up a contract with a new party,such as occurs when clearinghouses insert themselves between the buyer and seller of a futures contract.

---

Definitions:

Depreciation

This refers to the accounting process of allocating the cost of tangible assets over their useful lives, representing how much of an asset's value has been used up over time.

Office Equipment

Tangible items that are used in an office setting for operational purposes, such as computers, desks, and printers.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, usually comprising the balance sheet, income statement, and cash flow statement.

Profit Margin

Profit Margin is a financial metric that measures the percentage of revenue remaining after all expenses have been deducted from sales.