A ________ Represents an Agreement by a Bank to Pay

question 54

Multiple Choice

A ________ represents an agreement by a bank to pay a foreign company a given amount if certain conditions are met.

• A) certificate of deposit
• B) banker's acceptance
• C) callable option
• D) letter of credit

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Definitions:

Legal Form

Refers to the legal structure or type of business entity, such as corporation, partnership, sole proprietorship, etc., which determines legal liabilities and taxation methods.

Revenue

The total amount of money received by a company for goods sold or services provided during a specific time period.

Percentage-Of-Completion

An accounting method that recognizes revenues and gross profit on long-term contracts in proportion to the work completed to date.

Gross Profit

The difference between sales revenue and the cost of goods sold, representing the basic profitability of the sales of goods and services.