Futures Differ from Forwards Because They Are

question 14

Multiple Choice

Futures differ from forwards because they are

• A) used to hedge portfolios.
• B) used to hedge individual securities.
• C) used in both financial and foreign exchange markets.
• D) standardized contracts.

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Definitions:

Expired

Refers to resources or benefits that have been fully used and cannot contribute to future operations.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Prepaid Expenses

Costs that are paid for in advance and recorded as assets until they are used or consumed, at which point they become expenses.

Asset Account

Represents a resource owned or controlled by a company that is expected to provide future economic benefits.