A Trade Account Is

question 36

Multiple Choice

A trade account is:

• A)short-term financing of importing and exporting activities across the globe.
• B)a financial instrument that provides an exporter with a written guarantee that a financial institution will honour payment once the goods have been delivered.
• C)a bank draft that requires payment when the goods are received.
• D)the simplest form of financing international trade,involving the importer paying for the goods only after they are received and title to them has been transferred.

Understand the accounting for and effects of restrictions/appropriations of retained earnings.

Distinguish between public and private corporations based on stock characteristics.

Grasp the effects of correcting errors on retained earnings and how to calculate year-end balances.

Know the main sources of stockholders' equity and the primary purpose of stock splits.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually do pay.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating the economic benefit to consumers.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive.