Selling a Currency in a Currency Futures Contract and Profiting

question 44

Multiple Choice

Selling a currency in a currency futures contract and profiting on a decrease in the value of the currency over time is called _____.

• A) hedging
• B) syndicating
• C) a short position
• D) a long position
• E) marked-to-market exchange position

Comprehend the process of purchasing an asset with deferred payments including interest and its impact on the balance of debt principal over time.

Understand how changes in current asset and current liability accounts impact cash flow.

Recognize the significance of present value concepts in financing transactions and equipment purchases.

Understand the components and costs that can be capitalized in the initial measurement of tangible and intangible assets.

---

Definitions:

Petty Cash

A modest sum of money maintained in reserve for small, unplanned costs.

Journal Entry

A record in the accounting journal that represents a transaction and shows the debits and credits to various accounts.

Petty Cash Account

A small fund kept on hand for minor, incidental expenses.

Debit Memorandum

A document or entry recorded to reflect an adjustment or correction, usually increasing the amount a buyer owes to a seller.