Briefly describe the concepts of; Letter of credit, trade deficit, negotiable instrument and credit.

Q: How Interest, Principal, and Loan Balance Illustrated?

A: Answer: Interest is measured as a percentage of a loan balance, annually paid to the lender for the…

Q: How does the Trade notes payable differ from accounts payable?

A: Difference: Accounts payable is a short-term liability that is owed by the supplier to the creditor…

Q: How can we determine a Loan's Balance, Principal, and Interest?

A: Loan balance can be determined with the help of formulae: PV is present value r is rate N is number…

Q: Which of the following is NOT commonly regarded as being a credit policy variable? * Collection…

A: “Since you have asked multiple question, we will solve one question for you. If you want any…

Q: Define each following terms: p. American depository receipts (ADRs); repatriation of earnings

A: “Since you have asked multiple questions, we will solve the first question for you. If youwant any…

Q: nstrument is used by the exporter and nporter to fulfill their short term nancial requirement?

A: Banks provide credit to the business for import and export.

Q: Describe the basic methods of debt financing?

A: Every company has two major types of financing one is through raising equity shares and the other is…

Q: Discuss how accounts receivable and inventory can be used as collateral for short term securedloan.

A: The objective of this question is to understand how accounts receivable and inventory can be used as…

Q: When are foreign currency transaction gains or losses required to be recognized in the financial…

A: Foreign currency transactions are when a business buys or sells goods or services in a currency…

Q: Describe the method of determining the Cost of Debt?

A: The cost of debt is the profit a business offers its debtors and creditors. These capital suppliers…

Balance of Payments

BOP is categorized into the following three components: