Who Is Obligated to Make Payment Once Proof of Shipment

question 18

Multiple Choice

Who is obligated to make payment once proof of shipment of goods is documented in a letter of credit?

• A) the exporter
• B) the importer
• C) the importer's bank
• D) the importer's government

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Definitions:

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and investments.

Direct Method

An accounting method used to allocate service department costs directly to producing departments without any intermediate allocation.

Operating Activities

Operating activities involve the primary, day-to-day activities that a company engages in to generate revenue, such as sales, provision of services, and production.

Credit Sales

Sales made on credit, where the payment is received after the delivery of the goods or services.