The Type of Letter of Credit That Can Be Split

question 28

Multiple Choice

The type of letter of credit that can be split up between many suppliers,each able to present their own documents for payment and allowing the trader to take his profits from the balance of the credit,is called:

• A) an irrevocable credit.
• B) a revolving credit.
• C) standby credit.
• D) transferable credit.

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Definitions:

End-Of-Period Cash Balance

The amount of cash on hand at the conclusion of a financial reporting period.

End-Of-Period Net Income

The net income calculated at the end of an accounting period, reflecting the total earnings after accounting for all expenses and revenues.

Accounting Recognition

This refers to the process of recording financial transactions in the financial statements according to accepted accounting principles.

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity.