Which of the Following Is True of Open Accounts

question 24

Multiple Choice

Which of the following is true of open accounts?

• A) Sales on open accounts are very common as a 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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Definitions:

Control Limits

Statistical boundaries in process control that indicate the acceptable range of process variation.

Centerline

The midpoint value in a control chart that represents the average performance of the process being studied.

Lower Control Limit

The threshold in statistical quality control, below which a process is considered out of control and indicates variation not due to common causes.

P Chart

A statistical chart, known as a control chart, used for monitoring the proportion of defectives in a process over time.