Which of the following is true about an open account as a method of payment?

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An open account is a method of payment where the exporter bills the customer, who is then expected to pay under agreed-on terms at a future date after the goods are manufactured and delivered. It is a common credit arrangement between businesses, but it does involve some risk for the exporter who may not receive payment on time or at all. Option A is incorrect as an open account does not require immediate payment upon sight. Option C involves the use of a draft, which is not applicable in an open account. Option D is incorrect as an open account does not provide immediate use of the money. Option E involves other methods of payment such as wire transfers or credit cards, which are not a part of an open account arrangement.

Which of the Following Is True About an Open Account