Course: Financial Management

MATCHING TYPE
Instruction: Match the concepts with their descriptions. Write the letter that corresponds to
your answer.
Concept Description
C 1. Cash in Advance A Unconditional written order usually signed
by the seller addressed to the buyer
E 2. Letter of Credit B Involves goods sent to, but not sold to,
another party where the shipper retains the
ownership of the goods until the other party
has sold them
A 3. Draft C Calls for payment before the shipment of
goods
B 4. Consignment D Selling where goods are shipped first and
the buyer is billed later
D 5. Open Account E A document addressed to the seller, written
and signed by a bank acting on behalf of the
buyer where the bank promises to honor
drafts drawn on itself if the seller conforms
to the specific conditions set forth in the
document