CIPS Exam L4M4 Topic 1 Question 8 Discussion

Actual exam question for CIPS's L4M4 exam

Question #: 8
Topic #: 1

Which of the following payment mechanisms is most beneficial to the buyer?

Aopen/ credit account

Bterm / time draft

Csight draft

Dcash in advance

Show Suggested Answer

Suggested Answer: A

Open account (aka credit account) is most beneficial to the buyer. The supplier delivers the goods then the buyer pays.

Cash in advance is most beneficial to the supplier. The buyer pays for the item before receiving it.

This is a known exam topic.

by Eden at Apr 24, 2024, 04:18 PM

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2 days ago

That's true, but cash in advance provides the most protection.

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3 days ago

Sight draft is also secure for the buyer.

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4 days ago

I agree, it eliminates the risk for the buyer.

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5 days ago

Cash in advance is the most beneficial to the buyer.

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