The Timing Option Results from the Difference in Closing Times

question 30

True/False

The timing option results from the difference in closing times of the spot and futures market.

---

Definitions:

Journal Entry

A record in accounting that documents a business transaction in the general ledger, indicating the accounts and amounts to be debited and credited.

Accounts Payable

Short-term liabilities of a company, representing amounts owed to creditors for goods and services received but not yet paid for.

Interest Revenue

Earnings received for interest.

Fiscal Year

A 12-month period used for accounting purposes and the preparation of financial statements, which may or may not align with the calendar year.