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Explain the flow of goods and paper work in Diagram on Page 74 Ed. 10 [P. 70 in Ed. 9] of your textbook. Explain
a. how the transaction would work without a Letter of Credit.
b. how the transaction will work with the Letter of Credit from Buyer's Bank.
c. how the transaction differs if Seller has a bank and when the Seller does not have a bank.
d. the three purposes and roles of the Bill of Lading in this transaction.
e. how use of the Letter of Credit shifts the risk of non-payment between and among the various parties.
Be sure to explain and differentiate the different paths of the paperwork and the physical delivery of the goods.
What are the time dimensions of the income statement, the balance sheet, and the statement of cash flows? Hint: Are they videos or still pictures? Explain. Sol. The i
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