If Market Price at Year-End Is Less Than Contract Price

question 12

Essay

If market price at year-end is less than contract price for outstanding purchase commitments, a loss is recorded for the difference.
December 31, 2013

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Definitions:

Selectively Noticing

The cognitive process of focusing attention on certain stimuli or information while ignoring others, often based on personal relevance or importance.

Attention

The process of selectively concentrating on one aspect of the environment while ignoring other things.

Short-term Memory

The capacity for holding, but not manipulating, a small amount of information in mind in an active, readily available state for a short period of time.

Plus Or Minus

A symbol indicating the precision of an approximation or variation that could occur within a certain range.