Which One of the Following Grants Its Owner the Right

question 75

Multiple Choice

Which one of the following grants its owner the right to buy or to sell an asset at a prespecified price at any time during a stated period?

• A)option
• B)forward contract
• C)futures contract
• D)swap
• E)intrinsic contract

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Definitions:

Five-day Week

A common work schedule that consists of five working days, usually Monday through Friday, followed by a two-day weekend.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, recognizing the decrease in the value of the asset over time.

Adjusting Entry

An accounting entry made at the end of a period to assign income and expenses to the period in which they actually occurred.

Equipment

Tangible assets used in operations, such as machinery or office hardware, that have a useful life longer than one reporting period.