A payment method in which the buyer pays for goods prior to shipment is called ______.
A) a documentary collection
B) a documentary credit
C) a packing list
D) an open account
E) cash in advance

Question

Quizplus · Accepted Answer

Cash in advance is a payment method in which the buyer pays for goods prior to shipment. This is considered the safest option for the seller as they are guaranteed payment before releasing the goods. It may not be the most convenient method for the buyer, but it is commonly used in international trade when there is a lack of trust or uncertainty between the parties involved. The other options listed are different types of payment methods, but they do not involve the buyer paying prior to shipment.

A Payment Method in Which the Buyer Pays for Goods