Which of the Following Statements Holds True for an Open

question 31

Multiple Choice

Which of the following statements holds true for an open account?

• A)It is an arrangement in which the exporter ships the goods and then bills the importer.
• B)It is an arrangement in which an exporter is paid immediately on receipt of the bill of exchange.
• C)It is an arrangement in which an exporter sells a time draft at a discount to an intermediary that will pay the exporter immediately and then collect the full amount from the importer at the later date.
• D)It is an arrangement in which the exporter is paid exactly one year after the delivery has been made to the importer.
• E)It is an arrangement in which the exporter requires payment from the importer before shipping the goods.

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Definitions:

Legal Contract

A written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law.

Solicited Proposal

A proposal submitted in response to a request from a potential client or organization.

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Visual elements such as charts, graphs, and images used in written documents to illustrate or summarize data.

Flowchart

A diagram that visually outlines the steps or processes involved in a workflow or system.