Mega Has Just Shipped One of Its Products to Compucell

question 291

Short Answer

Mega has just shipped one of its products to Compucell on faith that they will pay the invoice. This is a(n)
trade acceptance.
revolving credit agreement.
line of credit.
open-book credit.
promissory note.

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Definitions:

Par Value

The legal capital assigned per share of a stock, which is a nominal value rather than indicative of the market price.

Discount

A reduction from the full amount or value of an item or security, often applied to bonds sold below their face value or to promote sales of products.

Coupon Interest Rate

The percentage of a bond's value that is paid out in interest to the bondholder annually, identical to the coupon rate.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, considering all interest payments and the repayment of principal.