In Which of the Following Forms of Export Financing Does

question 50

Multiple Choice

In which of the following forms of export financing does a bank assume a financial obligation?

• A)with an L\C but not a documentary collection
• B)with a documentary collection but not an L\C
• C)neither an L\C nor a documentary collection requires a bank to assume financial obligation
• D)with either an L\C or a collection letter
• E)with both an L\C and a documentary collection

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Definitions:

Prepaid Rent

An asset account that records rent payments made in advance for the use of property or space that hasn’t yet been incurred.

Adjusting Entry

An entry made in the journals to align the accounts with the true financial status by accounting for accrued or deferred items.

Net Income

A measure of profitability that calculates the total revenue minus total expenses, taxes, and costs.

Book Value

The net value of a company's assets, excluding intangible assets, as recorded on the balance sheet, often compared to the company's market value.