The Nominal Value of a Forward Contract to Purchase 5

question 14

Multiple Choice

The nominal value of a forward contract to purchase 5 million United States dollars (USD) is:

• A)5 million USD.
• B)5.1 million USD.
• C)2 million MXP.
• D)the nominal value cannot be determined until a future date.

---

Definitions:

Intangible Assets

Non-physical assets with economic value, such as patents, trademarks, copyrights, and goodwill, that are expected to provide benefits to a business over multiple periods.

Journalize

The act of recording financial transactions into the journal entries of an accounting system.

Upgrade

The process of enhancing or improving an existing system, software, or product to boost performance or add features.

Delivery Truck

A vehicle used for transporting goods from one location to another, primarily for business purposes.