Letter of Credit

Accounting Terms Dictionary

Select a letter below to view all accounting terms that begin with that letter.

Letter of Credit

This is a document issued by a buyer’s bank guaranteeing the seller’s bank will be paid when the goods are delivered in good condition.

When people in different countries want to trade they don’t want to deal with differences in contract law from one country to another. When the seller gets this letter of credit, he feels confident sending his goods across the border because he knows he is going to be paid.

There is currently no content classified with this term.

Get instant access to step-by-step instructions on how to apply and sit for the CPA Exam.

Expected or Past Undergrad Graduation Date*

When Do You Plan to Start Studying?