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advanced Financial Accounting a PowerPoint presentation in this presentation we will discuss forward exchange contracts get ready to account with advanced financial accounting forward exchange of contracts now were going to go over some of the components of the forward exchange contracts here well go into them on a lot more detail as we work through practice problems related to the forward exchange contracts but just to visualize the basic kind of layout of a forward exchange contract as you think about these items and therell be a lot more concrete once we look at practice problems were basically have a setup where were gonna be working with a bank or a dealer typically a bank and were gonna be setting up by for exchange contract which is basically gonna say we have a receivable and a payable on the books at this point in time and were either gonna put receivable or the payable that is going to be due to us or something that we will pay in foreign currency at the end of the tim