Which One of the Following Statements Is Correct

question 17

Multiple Choice

Which one of the following statements is correct?

• A)Futures contracts must be held to maturity.
• B)Futures contracts can be closed out only by contract buyers.
• C)Futures contracts can be closed out, but only during the week prior to maturity.
• D)You cannot avoid accepting delivery once you purchase a futures contract.
• E)Futures contracts can be closed out by entering a reverse trade.

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Definitions:

First Department

The initial production stage or department in a manufacturing process where raw materials begin their transformation into final products.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into the equivalent of fully completed units.

Materials

Refers to the substances or components that are used to manufacture or create a product.

First Processing Department

The initial stage or section in a manufacturing process where raw materials are first transformed into work-in-progress.