Which of the Following Is True of Open Accounts

question 13

Multiple Choice

Which of the following is true of open accounts?

• A) Sales on open accounts are very common method of payment in foreign trade.
• B) Sales on open accounts are generally recommended when special merchandise is ordered by the buyer.
• C) Sales on open accounts are not generally recommended when there is political unrest in the importer's country.
• D) When the country of the importer imposes difficult exchange restrictions, the best payment arrangement recommended is open accounts.
• E) Sales on open accounts are less risky for the seller when it involves new buyers.

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