Which of the Following Arranges Export Financing Payment Methods in Descending

question 14

Multiple Choice

Which of the following arranges export financing payment methods in descending order starting with the most secure/reliable and ending with the least secure/reliable?

• A) sales on open account→cash in advance→documentary credit (L/C)→documentary collection (draft)
• B) documentary credit (L/C)→sales on open account→documentary collection (draft)→cash in advance
• C) documentary collection (draft)→documentary credit (L/C)→cash in advance→sales on open account
• D) cash in advance→documentary credit (L/C)→documentary collection (draft)→sales on open account
• E) none of the above

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Definitions:

Spending Variance

The difference between the budgeted amount of expenditure and the actual amount spent.

Facility Expenses

Costs associated with maintaining and operating a physical location or building, such as rent, utilities, and maintenance.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a specific period or category.

Travel Expenses

Costs associated with traveling for the purpose of conducting business-related activities, including transportation, lodging, and meals.