An Entity That Has Taken a Buy Position in a Futures

question 65

True/False

An entity that has taken a buy position in a futures contract on a particular item will make a gain when the price of the item decreases.

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Definitions:

Bonds Payable

Long-term liabilities on a company's balance sheet, representing the amount owed to bondholders by the issuer.

Straight Line Amortization

A method of allocating an asset's cost evenly over its useful life.

Consolidated Net Income

The total amount of net income earned by a parent company and its subsidiaries, presented in the consolidated financial statements.

Non-Controlling Interest

A financial interest in a subsidiary not attributed to the parent company, representing minority shareholders' equity in the subsidiary's net assets.