When Accounting for Forward Contracts, What Is Meant by the Term

question 29

Multiple Choice

When accounting for forward contracts, what is meant by the term "executory contract"?

• A) No cash changes hands
• B) The CEO of the company is the only one authorized to engage in the contract
• C) There must be a price paid for the option
• D) The contract is valid if one of the parties sign it

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Definitions:

Need For Cognition

A personality trait that reflects a person's love for engaging in and enjoying thinking.

Self-Monitoring

The extent to which individuals regulate their behavior to accommodate social situations, reflecting on how one's actions are perceived by others.

Promotion Focus

A psychological approach emphasizing the pursuit of goals and aspirations, focusing on potential gains and accomplishments.

Need For Cognition

A personality trait reflecting an individual's desire to engage in and enjoy activities requiring thinking and mental effort.