IP5. Open account and remittance

Open account payment terms involve the seller delivering goods or services to the buyer without receiving immediate payment.

• True

• False

In an open account transaction, the buyer is expected to pay according to the terms of the sales contract and the seller's later invoice.

• True

• False

1. Travel businesses commonly use open account for all types of payments, not just penalty payments.

• True

• False

1. Hotels often establish open account relationships with corporate clients and frequent visitors.

• True

• False

1. Online travel booking platforms heavily utilize open account arrangements for payments.

• True

• False

1. Remittance methods are used for initial deposits when travelers book cruise or airline tickets.

• True

• False

1. The use of open account and remittance in tourism depends on factors like business size, service types, and regional preferences.

• True

• False

Remittance is a payment method where the seller ships goods to the buyer without immediate payment.

• True

• False

1. Remittances are primarily used for business-to-business transactions.

• True

• False

Open accounts are generally considered a high-risk payment method for sellers.

• True

• False