A(n)________ Allows the Bank to Modify the Terms of the Letter

question 98

Multiple Choice

A(n) ________ allows the bank to modify the terms of the letter only after obtaining the approval of both exporter and importer.

• A)bill of exchange
• B)bill of lading
• C)confirmed letter of credit
• D)irrevocable letter of credit

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Definitions:

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Prepaid Expenses

Expenses paid in advance for goods or services, which are recognized as assets until they are consumed or the term of use expires.

Bonds Issued

Long-term securities issued by corporations or governments to raise capital, with a promise to pay back with interest.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.