Name:
Class:
Date:
Indicate whether the statement is true or false.
1. Credit card sales on the Internet are handled differently than other credit card sales.
a.
True
b.
False
2. The growth of information technology and trading relationships have made doing business internationally more
complex.
a.
True
b.
False
3. It is easy to determine an international customer’s financial condition or to take legal action if that customer does not
pay.
a.
True
b.
False
4. International sales often specify a letter of credit as the method of payment.
a.
True
b.
False
5. International transactions are all covered by the same universal commercial laws and the same accounting standards.
a.
True
b.
False
6. International sales are not a very important source of revenue for businesses throughout the world.
a.
True
b.
False
7. Domestic sales are much simpler than international sales.
a.
True
b.
False
8. Internet sales must be done in cash rather than by using a credit card.
a.
True
b.
False
9. Selling merchandise to individuals or other businesses within one’s own country is generally referred to as domestic
sales.
a.
True
b.
False
10. A company’s website must be easy to navigate and safe to use.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
Name:
Class:
Date:
11. The entry to journalize the receipt of cash for the value of a time draft would be recorded in a
a.
cash payments journal.
b.
cash receipts journal.
c.
general journal.
d.
sales journal.
12. The entry to journalize an international cash sale is a debit to Cash and a credit to
a.
International Sales.
b.
Time Drafts Receivable.
c.
Sales.
d.
Internet Sales.
13. The entry to journalize the receipt of a time draft for an international sale would be recorded in a
a.
cash payments journal.
b.
cash receipts journal.
c.
general journal.
d.
sales journal.
14. The entry to journalize an international cash sale would be recorded in a
a.
cash payments journal.
b.
cash receipts journal.
c.
general journal.
d.
sales journal.
15. The entry to journalize the receipt of cash for the value of a time draft would be
a.
debit Time Drafts Receivable; credit Cash.
b.
debit Time Drafts Receivable; credit Sales.
c.
debit Sales; credit Time Drafts Receivable.
d.
debit Cash; credit Time Drafts Receivable.
16. The entry to journalize the receipt of a time draft for an international sale would be
a.
debit Time Drafts Receivable; credit Cash.
b.
debit Time Drafts Receivable; credit Sales.
c.
debit Sales; credit Time Drafts Receivable.
d.
debit Cash; credit Time Drafts Receivable.
17. The entry to journalize an Internet cash sale is a debit to Cash and a credit to
a.
International Sales.
b.
Time Drafts Receivable.
c.
Sales.
d.
Internet Sales.
Directions: Select the one term that best fits each definition. Print the letter identifying your choice on the line to the left
of the statement.
a.
bill of lading
b.
commercial invoice
c.
contract of sale
d.
draft
e.
exports
f.
imports
g.
letter of credit
h.
sight draft
i.
time draft
Name:
Class:
Date:
j.
trade acceptance
18. Goods or services shipped out of a seller’s home country to a foreign country.
19. A letter issued by a bank guaranteeing that a named individual or business will be paid a specified amount provided
stated conditions are met.
20. A draft payable on sight when the holder presents it for payment.
21. A form signed by a buyer at the time of a sale of merchandise in which the buyer promises to pay the seller a specified
sum of money, usually at a stated time in the future.
22. Goods or services shipped into the buyer’s home country from another country.
23. A document that details all the terms agreed to by the seller and buyer for a sales transaction.
24. A statement prepared by the seller of merchandise addressed to the buyer, showing a detailed listing and description of
merchandise sold, including prices and terms.
25. A written, signed, and dated order from one party ordering another party, usually a bank, to pay money to a third
party.
26. A draft that is payable at a fixed or determinable future time after it is accepted.
27. A receipt signed by the authorized agent of a transportation company for merchandise received that also serves as a
contract for the delivery of the merchandise.
Name:
Class:
Date:
Name:
Class:
Date: