Futures Contracts Require That the Purchaser Deposit an Initial Sum

question 59

Multiple Choice

Futures contracts require that the purchaser deposit an initial sum as collateral. This deposit is called a:

• A) collateralized deposit.
• B) marked market sum.
• C) margin.
• D) settlement.

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Definitions:

Salaries Expense

The total cost incurred by a company for paying its employees, typically recorded in the expense accounts in the general ledger.

Equipment

Equipment refers to the tools, machinery, and other durable assets used by a company in its operations.

Supplies

Supplies are consumable items used in the daily operations of a business, such as office or cleaning materials, that are not resold to customers.

Petty Cash

A small amount of cash on hand used for minor, incidental expenses of a business.