What Amount Will Be Recorded as the Value of the Forward

question 42

Multiple Choice

What amount will be recorded as the value of the forward contract on the commitment date if the forward contract is recorded using the net method?

• A) A liability of CDN$6,000.
• B) An asset of CDN$10,800.
• C) An asset of CDN$6,000.
• D)Nil.

Recognize the role of leadership in enhancing team performance and engagement.

Understand the principles and effectiveness of situational leadership.

Grasp the concept of self-managed teams and their impact on organizational effectiveness.

Understand the necessity of character in building trustful leadership relationships.

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Definitions:

Credit Sale

A transaction where goods or services are provided to a customer with the agreement that payment will be made at a later date.

Other Comprehensive Income

A component of shareholders' equity that includes income and expenses not recognized in net income, such as unrealized gains and losses on investments.

Unrealized Gains

Increases in the value of an asset that have not been sold, hence not yet converting the gain into cash.

Available-For-Sale Securities

Financial assets that are purchased with the intention of selling before their maturity date, not held for long-term investment.