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:

Negotiate

The process of discussing something with someone in order to reach a mutual agreement.

Contract

A legally binding agreement between two or more parties, outlining terms and conditions of a specific arrangement or service.

Election

A formal group decision-making process by which individuals choose candidates to fill positions in government or other organizations through a vote.

Union Steward

An employee elected by union members to represent them in ensuring that the terms of the labor contract are enforced.