Which One of the Following Is NOTtrue When Shipping Goods

question 21

Multiple Choice

Which one of the following is NOTtrue when shipping goods under documentary time drafts for acceptance?

• A)the exporter is extending credit to the importer
• B)the exporter is relinquishing control of the goods in return for a signature on the acceptance to assure it of payment
• C)the importer is no longer bound to pay the draft to the exporter
• D)a bill of lading will be the most important document of the transaction

Analyze the impact of varying activity levels on total budgeted overhead costs.

Prepare and adjust budgets for different measures of activity (e.g., number of customers served, number of jobs, machine-hours).

Interpret various components of a flexible budget, including revenue, expenses, and net operating income.

Understand the concept of flexible budgets and their importance in performance management.

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Definitions:

Nonconforming Goods

Merchandise delivered under a sale contract that fails to meet the quality, description, or specifications agreed upon.

Cure the Deficiency

To rectify or resolve a shortfall, error, or omission in a legal document or procedure.

Statutorily Established Liquidated Damages

Damages specified by law for certain breaches of contract, where actual damages are difficult to ascertain.

Firm Offer

A binding promise made by a seller to hold an offer open for a specified period of time, not requiring consideration to be enforceable under certain conditions in commercial transactions.