When the Futures Price Is Above the Forward Rate, Astute

question 94

Multiple Choice

When the futures price is above the forward rate, astute investors may attempt to simultaneously buy a currency forward and sell futures in that currency. These actions would place ____ pressure on the forward rate and ____ pressure on the futures rate.​

• A) ​upward; downward
• B) ​upward; upward
• C) ​downward; upward
• D) ​downward; downward

Demonstrate how to record transactions involving cash and credit sales, including sales discounts and sales returns.

Prepare general journal entries for sales transactions, including those involving sales taxes and credit terms.

Calculate the amount of cash collected in transactions involving sales taxes.

Distinguish between the recording of cash sales and credit sales, including the impact of sales returns and allowances.

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