The Three Basic Documents Needed in a Foreign Trade Transaction

question 47

Multiple Choice

The three basic documents needed in a foreign trade transaction are

• A)letter of credit,time draft,and proof of inspection.
• B)letter of credit,time draft,and a bill of lading.
• C)letter of credit,bill of lading,and insurance.
• D)time draft,bill of lading,and a pro forma statement.

Comprehend the formal documentation and accounting treatments for various types of receivables.

Understand the concept and purpose of the allowance method for accounting for uncollectibles.

Identify how to estimate bad debts and make adjusting entries for bad debt expense.

Recognize the effects of bad debt adjustments on financial statements.

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Definitions:

Observations

Data collected during an experiment or research which are analyzed to gain insights and draw conclusions.

Confidence Intervals

A gamut of values, developed from the statistics of a sampling, with a high chance of containing the value of an unknown population parameter.

Interval Center

Refers to the midpoint of an interval, representing the average of its upper and lower bounds.

Confidence Interval

A range of values, derived from the sample data, that is used to estimate the true value of a population parameter with a specified level of confidence.