A Straight Bill of Lading Is Most Likely to Be

question 46

Multiple Choice

A straight bill of lading is most likely to be used under which of the following circumstances?

• A) when the merchandise has not been paid for in advance
• B) when the transaction is being financed by a bank
• C) when the shipment is to an affiliate
• D) none of the above

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Definitions:

Discount on Bonds Payable

The gap between what a bond is actually worth and the price at which it is sold, in cases where it sells for less than its stated value.

Bonds Payable

This term refers to the amount of money a company owes to bondholders at the end of an accounting period, representing a long-term liability.

Present Value

The present valuation of money to be received in the future or recurrent cash inflows, accounting for a chosen rate of interest.

Compounded Annually

Interest on an investment or loan calculated once a year, where each year's interest payment includes interest on the original principal and on the accumulated interest of previous periods.