Which of the Following Is a Common Means of Dealing

question 47

Multiple Choice

Which of the following is a common means of dealing with payment risk in international transactions?

• A) guarantees
• B) security agreements
• C) a letter of commitment
• D) a letter of credit

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Definitions:

Ledger

A comprehensive collection of accounts that records all financial transactions of a business, categorized for reporting and analysis purposes.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts and prepare the company’s books for the next period.

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business over a specific period of time, including the balance sheet, income statement, and statement of cash flows.