Listed Below Are Five Terms Followed by a List of Phrases

question 141

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Change in depreciation method

• A)Cost allocation for an intangible asset.
• B)Cost allocation for a natural resource.
• C)Cost less residual value.
• D)Amount of use expected from plant and equipment asset.
• E)Treated prospectively like a change in estimate

---

Definitions:

Forward Trade

A non-standardized contract between two parties to buy or sell an asset at a specified future date for a price that is agreed upon today.

Spot Exchange Rate

The current price for exchanging one currency for another for immediate delivery, reflecting the value of one currency in terms of another at a specific moment in time.

Forward Trade

A financial contract agreement to buy or sell assets at a specified future date and price, used primarily in commodity and currency markets.

Forward Exchange Rate

The agreed upon exchange rate for a currency pair to be traded at a future date, used in hedging and speculation.