Which of the Following Stands at the Center of International

question 16

Multiple Choice

Which of the following stands at the center of international commercial transactions and is issued by a bank at the request of an importer?

• A)Bill of lading
• B)Time draft
• C)Letter of credit
• D)Sight draft
• E)Bill of exchange

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Definitions:

Net Income

The ultimate profit of a firm calculated by subtracting all outgoings and taxation from the gross revenue.

FIFO

"First In, First Out," an inventory valuation method where items produced or acquired first are sold, used, or disposed of first.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals, and cost of goods sold is calculated at the end of an accounting period.

Ending Inventory

The worth of products ready to be sold at the closure of a financial period, determined by adding the initial inventory to purchases and subtracting the cost of goods sold.