Which of the Following Is a Major Drawback of Engaging

question 104

Multiple Choice

Which of the following is a major drawback of engaging in countertrade?

• A) Countertrade is not useful when trading with developing nations.
• B) Financing is difficult when engaging in a countertrade.
• C) It is not attractive to small organizations.
• D) Countertrade may involve the exchange of unusable goods.

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Definitions:

Outstanding Check

One that has been written but hasn’t yet cleared the bank and been charged to the customer’s account.

Adjusted Cash Balance

An amount reflecting the true cash balance after accounting for outstanding checks or deposits in transit.

Check Register

A check register is a record book used to track checks written, deposits made, and the current balance of a checking account.

Closed Account

A bank or credit account that has been terminated, either by the customer or the financial institution, often due to inactivity or zero balance.