mrashrafkotkaat
26.12.2020 •
Business
A forward contract: A) Allows for immediate delivery at an agreed upon price which is to be paid on the future settlement date. B) Requires that payment be made in full when the contract is originated. C) Provides the buyer with an option to buy an asset on the settlement date at the forward price. D) Is a binding agreement on both the buyer and the seller and nets out as a zero sum game. E) Is marked to the market daily at the seller's request.
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Ответ:
$787.5
Explanation: On April a company paid the 3150 premium on a three year insurance policy with benefits beginning on that date.
The amount of the insurance expense will be reported on the annual income statement for the first year ended December 31st will be calculated as:
insurance policy is for 3 years i.e 36 months
From April to December that year will be 9 Months
Amount of insurance expense: 3150*9/36 = 787.5