An Account Linked with Another Account That Has an Opposite

question 143

Multiple Choice

An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n) :

• A) Accrued expense.
• B) Contra account.
• C) Accrued revenue.
• D) Intangible asset.
• E) Adjunct account.

---

Definitions:

Riskless Arbitrage

A financial strategy that aims to profit from discrepancies in the price of identical or similar financial instruments on different markets or in different forms without risk.

Spot Oil Prices

The current market price at which oil can be bought or sold for immediate delivery.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government securities.

S&P Contract Multiplier

A factor used to determine the cash value of an S&P futures contract, which multiplies the value of the contract's underlying asset by a specific amount.