A Banker's Acceptance Is

question 20

Multiple Choice

A banker's acceptance is

• A)a time draft drawn on the exporter's bank.
• B)a method to help importers evaluate the creditworthiness of exporters.
• C)a liability of the importer and the importer's bank.
• D)an add-on instrument.
• E)for greater than one year maturity.

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Definitions:

Traditional Income Statement

An income statement format that separates costs into categories of cost of goods sold and operating expenses to calculate net income.

Mixed Costs

Costs that have both a fixed and variable component, changing with the level of output but not directly proportional to it.

CVP Analysis

Cost-Volume-Profit Analysis is a technique in managerial accounting that examines the impact of cost and volume changes on a company’s operating and net income.

Cost-volume-profit

An analysis to determine how changes in costs and volume affect a company's operating income and net income.