A ________ Allows for a Delay in Payment

question 19

Multiple Choice

A ________ allows for a delay in payment.

• A) bill of lading
• B) time draft
• C) sight draft
• D) letter of credit

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Definitions:

GAAP Accounting

Generally Accepted Accounting Principles, a set of rules and standards for financial reporting and accounting practices in the United States.

Unrealized Gain

The hypothetical profit on an investment that has not yet been sold, and thus, not yet converted into actual cash.

Hedged Item

An asset, liability, or planned transaction exposed to price risks that are offset by using a hedging instrument.

Anticipated Transaction

A future financial operation or deal that is expected to occur.