Which of the Following Is True

question 16

Multiple Choice

Which of the following is true?

• A) The forward rate is the same as the spot rate that will prevail in the future.
• B) The future spot rate is equal to the forward rate less the current spot rate.
• C) The actual spot rate that will prevail in the future is not known today.
• D) The future spot rate is the current spot rate increased by the inflation rate.

Recognize the importance and method of adjusting entries for inventory and supplies.

Comprehend the effects of inaccuracies in inventory counting.

Understand the principle of the double-entry system in adjusting entries.

Identify the expenses related to borrowing and operating activities.

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Definitions:

Perfect Competitor

A firm in a market structure where it takes the prevailing market price as given and decides its output level without being able to influence the market price.

Long Run

A period in economics during which all factors of production and costs are variable, and firms can enter or exit the industry.

Monopolistic Competitor

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power in setting prices.

Demand

The desire and ability of consumers to purchase goods and services at given prices.