A(n) ________________________ Is a Payment Form Where a Draft Is

question 64

Multiple Choice

A(n) ________________________ is a payment form where a draft is so drawn as to be payable on presentation to the drawee (usually the buyer) .

• A) cash with order
• B) third party draft
• C) confirmed irrevocable letter of credit
• D) sight draft
• E) time draft

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Definitions:

Opportunity Cost

The revenue that is foregone from an alternative use of an asset, such as cash.

Make-Or-Buy Options

The decision-making process where a company chooses between manufacturing a product in-house or purchasing it from an external supplier.

Differential Revenue

The difference in revenue generated under two different scenarios or choices.

Differential Revenue

The difference in revenue generated from two different business decisions, often used in managerial accounting to assess alternatives.