Which of the Following Are True

question 13

Multiple Choice

Which of the following are true?

• A) Futures options are usually European
• B) Futures options are usually American
• C) Both American and European futures options trade actively in exchanges
• D) Both American and European futures options trade actively in the OTC market

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Definitions:

Specific Write-off

The action of recognizing that a specific asset, often an account receivable, has become uncollectible and removing its value from the books.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total amount of accounts receivable to reflect the amount that is expected to be uncollectible.

Bad Debts Expense

An expense account reflecting amounts that are not expected to be collected due to customer defaults.

Bad Debts Recovered

Money that was previously written off as unrecoverable but has since been collected.