Which of the Following Is Not True Regarding Letters of Credit

question 5

Multiple Choice

Which of the following is not true regarding letters of credit?

• A) They are issued by banks on behalf of the importer promising to pay the exporter.
• B) A revocable letter of credit can be cancelled or revoked at any time without prior notification to the beneficiary.
• C) They guarantee that the goods shipped are the goods purchased.
• D) All of the above are true.

Comprehend the sequential process of accounting from transaction analysis to the preparation of financial statements.

Distinguish between the various books of entry (journal, ledger) and their roles in the accounting cycle.

Understand the limitations of a trial balance in detecting accounting errors and the nature of accrual basis accounting.

Understand the purpose and requirements for different forms used in SEC filings.

---

Definitions:

Second Shift

The phenomenon where individuals, often women, work a day job and then return home to perform domestic chores and caregiving, effectively working a "second shift."

Divorced Parents

Individuals who have legally ended their marriage and are no longer living together as spouses, often involving arrangements for co-parenting if children are involved.

Cohabitation

The living arrangement in which an unmarried couple resides together in a long-term relationship that resembles a marriage.

Custody

The physical and legal responsibility of caring for children; assigned by a court for divorced or unmarried parents.