The Buyer of a Forward Contract Will Be

question 60

Multiple Choice

The buyer of a forward contract will be:

• A)taking delivery of the goods today at today's price.
• B)making delivery of the goods at a later date at that date's price.
• C)making delivery of the goods today at today's price.
• D)taking delivery of the goods at a later date at a pre-specified price.
• E)deciding on a future date whether or not to take delivery at a pre-specified price.

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Definitions:

Service Fees Earned

Income recognized by a company for services it has provided to clients.

Account Changes

Adjustments made to accounts to update or correct their balances, which might include error corrections, adjustments, or updates.

Expanded Accounting Equation

Assets = Liabilities + Capital – Withdrawals + Revenue – Expenses.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of the owners.