Accounting Chapter 24

Goods or services shipped out of a seller's home country to a foreign country are exports.

• True

• False

A letter issued by a bank guaranteeing that a named individual or business will be paid a specified amount provided stated conditions are met is a letter of credit.

• True

• False

A bill of lading serves as a customer invoice for merchandise sold.

• True

• False

A form signed by a buyer at the time of a sale of merchandise in which the buyer promises to pay the seller a specified sum of money usually at a stated time in the future is a trade acceptance.

• True

• False

International sales are not a very important source of revenue for businesses throughout the world.

• True

• False

International sales are more complex than domestic sales.

• True

• False

Credit card sales are not considered to be cash sales.

• True

• False

All transactions in the U.S. are covered by the same universal commercial laws and the same accounting standards.

• True

• False

The terminal summary is used as the source document for Internet sales.

• True

• False

Few businesses use trade acceptances in international sales.

• True

• False