Assuming a forward contract was entered into on December 16, how would the forward contract be reflected on Car's December 31, 2018 balance sheet?
A) Forward contract (asset).
B) Forward contract (liability).
C) Foreign currency (asset).
D) Foreign currency (liability).
E) Foreign exchange (liability)

Question

Quizplus · Accepted Answer

A forward contract would be reflected as an asset on the balance sheet if it has a positive fair value as of the balance sheet date.

Assuming a Forward Contract Was Entered into on December 16