Correct Answer: D. capital reserve

Explanation

(a) (i) Ordinary invoice is used as an evidence of credit sale while proforma is used when the seller did not want to sell on credit

(ii) Ordinary invoice is always sent with the goods while proforma invoice can be sent without the goods

(iii) Ordinary invoice is not used to provide information but to confirm sales while proforma invoice can be used where the buyer needs information from the seller on terms of sales.

(b)(i) 5% Trade discount implies that 5% trade discount would be given to the customer when he buys in large quantity. This is a reduction on catalogue price so as to allow the seller's mark up.

(ii)Net 3 month means there would be no discount to be given after three months The buyer would pay the invoiced amount if payment is made after 3 months. It allows credit purchase.

(iii)E.&Odepicts errors and omission excepted. This simply means that the supplier has the right to make any necessary correction, if it is discovered later that the invoice contains errors or omissions.

(iv)Carriage forward signifies that the buyer is responsible for the payment of carriage, when he receives the goods dispatched by the seller. It means that the price quoted on an invoice does not include carriage charges.

(v)2½% Cash discountmeans that a 2½% discount would be allowed on settlement of account, if buyer pays cash within a specified period.

Correct Answer: D. terminal handling is eliminated by door-to-door delivery

Explanation

Road transport offers the convenience of delivering goods directly from the origin to the destination without the need for intermediate handling at terminals. This is known as door-to-door delivery. Unlike other means of transport, such as rail or air transport, where goods often need to be transferred and handled at terminals, road transport allows for seamless transportation from the shipper's location to the recipient's location.

Correct Answer: B. it shows not records of damaged goods

Explanation

A clean bill of lading is a type of ocean bill of lading. It is a transport document that indicates that the goods received in the vessel are in good condition and free from any defect.

Correct Answer: A. customer to a bank

Correct Answer: D. spread individual losses over all covered participants

Correct Answer: A. A good storage system

Correct Answer: D. an offer but no acceptance

Correct Answer: A. buying and selling foreign currency

Explanation

A bureau de change is a business that makes its profit by buying foreign currency and then selling the same currency at a higher exchange rate.

Correct Answer: B. provision of credit facilities to exporters