Which of the Following Represents the Most Secure Option for Exporters

question 26

Multiple Choice

Which of the following represents the most secure option for exporters regarding financing?

• A) Bill of lading
• B) Certificate of understanding
• C) Bill of financing
• D) Letter of credit
• E) Terms of sale

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Definitions:

Payroll Accrual

The recording of the earnings of employees that have been earned but not yet paid, typically used to accurately represent a company's liabilities.

Annual Payroll

The total amount of wages, salaries, bonuses, and other compensation paid by a business to its employees over a year.

Business Days

Days of the week excluding weekends and public holidays, typically Monday through Friday, when business operations are conducted.

Fixed Charge Coverage

A financial metric evaluating how well a company can pay off its fixed expenses, like interest and leases, using its earnings before interest, taxes, depreciation, and amortization (EBITDA).