An Actual Count of a Stock of Goods on Hand

question 24

True/False

An actual count of a stock of goods on hand is called a physical inventory.

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Definitions:

Financial Asset

Any asset that is cash, the right to receive cash or another financial asset, or an equity instrument of another entity, such as stocks, bonds, or derivatives.

Underlying Asset

An asset upon which a derivative’s price is based, such as stocks, bonds, commodities, or currencies.

Futures Contracts

Standardized legal agreements to buy or sell a particular commodity or financial asset at a predetermined price at a specified time in the future.

Marking-to-market

The practice of updating the value of an asset to its current market level rather than its book value for accounting purposes.