Which of the Following Is an Example of a "Future

question 39

Multiple Choice

Which of the following is an example of a "future"?

• A)Right to buy 100 shares of CIBC over the next 5 years.
• B)Commitment to buy 100 barrels of oil next month at $125/barrel on the Chicago Mercantile Exchange.
• C)Commitment to buy $100,000 U.S. dollars in 120 days at US$ = 1.10 from another company.
• D)Pay interest at prime +3% in exchange for receiving interest at 5%.

---

Definitions:

Australian Accounting Standards

The principles and rules governing financial reporting and accounting practices in Australia.

Internal Managers

Individuals within an organization responsible for directing and overseeing the operations and strategies of specific departments or the entire business.

External Parties

Individuals or organizations outside of a company who have an interest or stake in the business's performance, including suppliers, customers, regulators, and the general public.

Professional Scepticism

An attitude that includes a questioning mind and a critical assessment of audit evidence.