Explain the role of the advising bank in a letter of credit transaction
What will be an ideal response?
Once a bank issues a letter of credit, it will commonly deliver the credit to a correspondent bank located in the beneficiary's county, which will in turn deliver the credit to the beneficiary. The correspondent, formally known as an advising bank, assumes no liability for paying the letter of credit. Its only obligation is to the issuing bank, to ensure that the beneficiary is advised and the credit delivered, and to take "reasonable care to check the apparent authenticity of the credit." It does this by comparing the signature on the credit with the authorized signatures it maintains on file.
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Which of the following best describes the fundamental, underlying reason for why there is demand for an independent auditor to report on financial statements?
A. Different interests may exist between the company preparing the statements and the parties using the statements. B. A poorly designed internal control system may be in place. C. A management fraud may exist and it is more likely to be detected by auditors if they are independent. D. A misstatement of account balances may exist and it is the independent auditor's responsibility to ensure that financial statements are not misstated.
To gain authorization for hiring a foreign worker, an employer must show that no U.S. Worker is qualified, willing, and able to take the job
Indicate whether the statement is true or false
The DuPont system merges the income statement and balance sheet into two summary measures of profitability, ________
A) net profit margin, and return on total assets B) net profit margin, and return on equity C) return on total assets, and return on common equity D) net profit margin, and price/earning ratio
The fastest but most expensive means of transportation is by air.
Answer the following statement true (T) or false (F)