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

question 25

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 not valid unless both parties sign it.

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Definitions:

Negative Messages

Communications that convey unfavorable, adverse, or disappointing information, often requiring careful wording to mitigate impact.

General Guidelines

Broad and nonspecific rules or principles that provide a framework within which actions can be taken.

Maintaining Goodwill

The effort to preserve or enhance positive relationships and reputation with others, often through ethical behavior and communication.

Buffers

Statements or elements in communication that soften the impact of a message, often used to prepare the recipient for bad news or criticism.