The Return on a Futures Contract Is Calculated as

question 24

Multiple Choice

The return on a futures contract is calculated as

• A) (purchase price - selling price)/purchase price.
• B) (selling price - purchase price)/purchase price.
• C) (selling price - purchase price)/margin deposit.
• D) (purchase price - selling price)/margin deposit.

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Definitions:

External Auditors

Independent experts who review the financial statements of a company to ensure accuracy and compliance with accounting standards.

Estimates

Approximations or educated guesses used in accounting to quantify amounts when precise measurements are unavailable or impractical.

Managerial Accounting

Managerial accounting involves the provision of financial information to management for decision-making, planning, and control purposes.

Financial Accounting

The field of accounting focused on the summarization, analysis, and reporting of financial transactions pertaining to a business.