Consider a Bank That Acknowledges That It Will Make Payments

question 7

Multiple Choice

Consider a bank that acknowledges that it will make payments on behalf of a computer importer after the computers are delivered to the importer. This reflects:

• A) accounts receivable financing.
• B) forfaiting.
• C) factoring.
• D) a letter of credit.

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Definitions:

Tax Effect

The impact financial transactions have on the amount of tax payable by an individual or corporation.

Revaluation

The process of adjusting the book value of a company's assets to reflect their current market values

OCI

Other Comprehensive Income represents gains and losses that are not included in net income on the income statement.

IAS 16

International Accounting Standard 16 outlines the accounting treatment for most types of property, plant, and equipment, including their recognition, measurement, and disclosure requirements.