A Shipment That Is Held by the Importer Until the Merchandise

question 106

Multiple Choice

A shipment that is held by the importer until the merchandise has been sold is called:

• A)advance payment.
• B)confirmed irrevocable letter of credit.
• C)unconfirmed irrevocable letter of credit.
• D)open account.
• E)consignment.

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Definitions:

Free Cash Flow

The cash that a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Net Income

The total earnings of a company after subtracting all expenses from revenue, including taxes and interest.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash.

Net Cash

The amount of cash that remains after accounting for all cash inflows and outflows during a specified period.