Which of the Following Is Not a Forward Contract

question 44

Multiple Choice

Which of the following is not a forward contract?

• A) a long-term employment contract at a fixed salary
• B) an automobile lease non-cancelable for three years
• C) a rain check
• D) a signed contract to buy a house in six months
• E) none of the above

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Definitions:

Financial Statement Footnotes

Detailed explanations and additional information provided at the bottom of financial statements, clarifying specific line items.

Two-Statement Approach

A financial reporting method where income tax effects of items reported outside the income statement are recognized directly in equity instead of income statement.

Unrealized Gains

Profits that have been achieved on paper from investments but have not yet been realized through selling the investment.

Other Comprehensive Income (OCI)

Income that is not included in net income, including items that are not realized or not reflected in earnings.