With an open account the formal instrument of credit is the:
A)purchase order.
B)invoice.
C)promissory note.
D)banker's acceptance.
E)secured loan document.

Question

Quizplus · Accepted Answer

An open account transaction in trade finance means that goods are shipped and delivered before payment is due, typically within 30 to 90 days. The invoice serves as the formal instrument of credit in this scenario, detailing the amount owed by the buyer to the seller for the goods or services provided.

With an Open Account the Formal Instrument of Credit Is