When Accounting for Forward Contracts, What Is Meant by the Term

question 29

Multiple Choice

When accounting for forward contracts, what is meant by the term "executory contract"?

• A) No cash changes hands
• B) The CEO of the company is the only one authorized to engage in the contract
• C) There must be a price paid for the option
• D) The contract is valid if one of the parties sign it

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Definitions:

Quantity Demanded

The specific amount of a good or service that consumers are willing to buy at a given price, holding other factors constant.

United States

A country located in North America, consisting of 50 states and a federal district, known for its significant influence on world economics, politics, and culture.

Excess Demand

A market condition in which the quantity demanded of a product exceeds the quantity supplied at a given price.

Nonprice Ration

Distributing or allocating goods based on criteria other than price, such as need or merit.