A Wheat Futures Contract Is Quoted in Cents Per Bushel

question 41

Multiple Choice

A wheat futures contract is quoted in cents per bushel with a contract unit of 5,000 bushels. If the contract is quoted at a settle price of 529, then the value of one wheat futures contract is

• A) $529.
• B) $2,645.
• C) $26,450.
• D) $9,451.80.

Acknowledge the importance and implications of sales growth on financial planning.

Understand the principle of the percentage of sales approach in financial forecasting.

Comprehend how changes in dividend payout ratios affect a firm's growth and financing needs.

Understand the concept of plowback ratio and its significance for a firm's future growth.

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Definitions:

Cash Receipts

Records of all cash amounts received by a company, documenting sales, returns, and other transactions involving cash inflows.

Cash Payments

Monetary transactions where cash is used to settle the amount owed for purchases or expenses.

Note Payable

A written promise to pay a specified amount of money, usually with interest, by a certain date to the holder of the note.

Journal Entry

A record of the transactions that occur within a company, entered into the accounting ledger reflecting debits and credits in order to maintain accurate financial statements.