Which of the Following Is Not True Regarding a Banker's

question 30

Multiple Choice

Which of the following is not true regarding a banker's acceptance?

• A) It can be beneficial to the exporter, as he does not have to worry about the credit risk of the importer.
• B) It can be beneficial to the importer, as he may have greater access to foreign markets when purchasing supplies.
• C) It can be beneficial to the bank accepting the draft in that it earns a commission for creating an acceptance.
• D) It is a sight draft.
• E) All of the above are true.

Identify and classify various types of plant assets, natural resources, and intangible assets.

Differentiate between revenue expenditures and capital expenditures.

Calculate and interpret total asset turnover.

Recognize the impact of obsolescence and inadequacy on plant assets.

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Definitions:

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Days' Payable Outstanding

Days' Payable Outstanding (DPO) is a financial ratio that indicates the average time (in days) that a company takes to pay its bills and invoices to its trade creditors.

Accounts Payable

Accounts payable are amounts a company owes because it purchased goods or services on credit from a supplier or vendor.

Days' Payable Outstanding

A financial metric that measures how long it takes a company to pay its invoices from suppliers, reflecting on cash management practices.