In a Typical International Trade Transaction, the Order of Activity

question 14

Multiple Choice

In a typical international trade transaction, the order of activity would be which of the following?

• A) The foreign buyer places an order; The domestic manufacturer ships to the buyer; The manufacturer's bank presents a draft and documents to the buyer's bank for acceptance; The buyer's bank submits payment to the manufacturer's bank.
• B) The domestic manufacturer ships to the buyer; The buyer's bank submits payment to the manufacturer's bank; The foreign buyer places an order; The domestic manufacturer ships to the buyer; The manufacturer's bank presents a draft and documents to the buyer's bank for acceptance.
• C) The foreign buyer places an order; The manufacturer's bank presents a draft and documents to the buyer's bank for acceptance; The domestic manufacturer ships to the buyer; The buyer's bank submits payment to the manufacturer's bank.
• D) The domestic manufacturer ships to the buyer; The manufacturer's bank presents a draft and documents to the buyer's bank for acceptance; The foreign buyer places an order; The buyer's bank submits payment to the manufacturer's bank.

Recognize which financial statement reports specific account balances.

Differentiate between permanent and temporary accounts.

Prepare journal entries for transactions involving purchases, returns, and payments.

Apply the net method for recording purchases in a periodic inventory system.

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Definitions:

Proteins

Large biomolecules composed of one or more chains of amino acids, essential for the structure, function, and regulation of the body's tissues and organs.

Chyme

The semi-fluid mass of partly digested food that moves from the stomach to the small intestine for further digestion.

Gastric Fluid

Fluid secreted by the stomach lining; contains digestive enzymes, acid, and mucus.

Food

Nutritious substances consumed by organisms for growth, repair, and maintenance of vital functions.