Which One of the Following Is the Major Difference Between

question 88

Multiple Choice

Which one of the following is the major difference between forward and futures contracts?

• A) Futures contracts are more expensive than forward contracts.
• B) Forward contracts are available only for foreign currencies.
• C) Futures contracts are always delivered.
• D)Forward contracts are not marked to market.

---

Definitions:

Inventory

The total amount of goods and materials held by a company for the purpose of sale or production.

Income Taxes

Taxes that individuals or entities pay on their income to federal, state, or local tax authorities.

Unrealized Intercompany Profits

Profits that arise from transactions between entities within the same group, which are not yet realized through sales to external parties.

Matching Principle

An accounting principle that expenses should be recorded in the period in which they are incurred to generate revenues, ensuring that financial statements accurately reflect a company's performance.