the term 'forward reference' applies to using a method or variable before it has been declared. In c\c++, the compiler has to know the prototype of the method before it is used but
Java is not so demanding.
The rules are:
Method Variables - you must declare and initialize a method variable before it is used
Class/Instance Variables/Methods - can be used in the source code file before they have been declared. The Java compiler will probably already know about these methods form a previous sweep through the file.
Good luck with your exam (if you haven't already taken it)