Which of the Following Is NOT True

question 11

Multiple Choice

Which of the following is NOT true

• A) Futures contracts nearly always last longer than forward contracts
• B) Futures contracts are standardized; forward contracts are not.
• C) Delivery or final cash settlement usually takes place with forward contracts; the same is not true of futures contracts.
• D) Forward contracts usually have one specified delivery date; futures contract often have a range of delivery dates.

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Definitions:

Gain on Bargain Purchase

The excess of the fair value of the net assets acquired over the consideration paid in a business combination.

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Single Cash-generating Unit

The smallest identifiable group of assets that generates cash flows independently from other assets or groups of assets within an organization.

Goodwill Impairment

An accounting process where the recorded value of goodwill on a company's balance sheet is reduced due to declines in the fair value of the acquired business units.