A Contractual Obligation of a Bank for a Future Payment

question 25

Multiple Choice

A contractual obligation of a bank for a future payment is called an:

• A) Letter of contract
• B) Export netting agreement
• C) Transfer price
• D) Banker's acceptance

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Definitions:

Purchase Order

An official document issued by a buyer committing to pay the seller for the supply of specific products or services at agreed prices.

Approved Vendor

A supplier that has been vetted and authorized by a company to provide goods or services.

Receiving Report

A document that records the details of goods received by a company, ensuring the quantities and quality match the purchase order.

Initial Record

The first entry or documentation of a transaction or event in the accounting records.