A Banker's Acceptance Is

question 39

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 1 year maturity.

Differentiate between the Internet and the World Wide Web and understand the role of protocols and domain names in navigating the web.

Understand the concept and application of the direct method in preparing the statement of cash flows.

Calculate the effects of changes in account receivables, account payables, and inventories on cash flow.

Adjust reported income statement figures to a cash basis for the statement of cash flows.

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Definitions:

Estimated Life

The expected duration over which an asset is likely to be useful or productive in its intended operation, used for depreciation purposes.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life, resulting in the same depreciation expense each year.

Depreciable Cost

The total cost of a tangible asset that can be depreciated over its useful life, excluding salvage value.

Depreciation Expense

Dividing the expense of a material asset throughout its service life.