A/An ________ Letter of Credit Is Intended to Serve as a Means

question 33

Multiple Choice

A/An ________ letter of credit is intended to serve as a means of arranging payment, but not as a guarantee of payment.

• A) irrevocable
• B) revocable
• C) confirmed
• D) unconfirmed

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Definitions:

Operating Budgets

Comprehensive financial plans used by an organization to forecast its expected revenues and expenses for a future period, guiding daily operations.

Budgeted Volume

The anticipated quantity or amount of sales, production, or activity planned for a future period.

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Expected Sales

Forecasted or projected revenue figures estimated from future sales over a specific period.