Financial Accounting A forward contract's fair value at inception istypically:[A] Equal to the notional amount[B] Zero[C] Equal to the premium paid[D] The present value of future cash flows[E] none

Concept of Forward Contract:A forward contract is a financial agreement between two parties to buy…

Answered: A forward contract's fair value at…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 4Q

See similar textbooks

Similar questions

Detailed answer with explanation
Final answer
General Accounting Theory Question
Subject: accounting
An agreement between two parties to exchange a series of specified periodic cash flows in the future based on some underlying instrument or price is a(n): a. forward agreement. b. futures contract. c. interest rate collar. d. option contract. e. swap contract. Clear my choice
2. Which of the following may not be equal to the contract rate of interest? a. stated rateb. nominal ratec. face rated. effective rate
An agreement between two parties to exchange a series of specified periodic cash flows in the future based on some underlying instrument or prices r O option contract. Oswap contract O futures contract. Actvate Windows forward agreement.
In an interest swap contract, the exchange of cash flow calculated in each period is based upon the: a. notional principal. b. present value of notional principal. c. swap principal. d. face value of interest-bearing bond.
What are the differences in accounting for a forward contract used as (a) a cash flow hedge and (b) a fair value hedge of a foreign currency denominated asset or liability?
According to the fair value principle, assets and liabilities should be reported Select answer from the options below 1.at their fair market value. 2.at their historical cost. 3.at a value agreed upon by interested parties. 4.at cost plus inflation.
A "cash and carry" transaction involves the purchase of an asset with borrowed funds and the sale of a futures contract involves the short sale of an asset, lending funds, and the purchase of a futures contract involves the sale of a call option and the simultaneous purchase of the asset O None of the above
AASB 13 defines exit price as: Select one: A. The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. B. The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. C. The price that would be received to sell an asset or paid to transfer a liability. D. A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (e.g., a forced liquidation or distress sale).

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

International Financial Management

Finance

ISBN:

9780357130698

Author:

Madura

Publisher:

Cengage

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

International Financial Management

Finance

ISBN:

9780357130698

Author:

Madura

Publisher:

Cengage

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS

A forward contract's fair value at inception is typically: [A] Equal to the notional amount [B] Zero [C] Equal to the premium paid [D] The present value of future cash flows [E] none