Q871
In international financial environment for settlement of debts there is a practice known as netting practice. The netting practice pertains to which one of the following?
A.
A practice by which subsidiaries of affiliates within the TNC network settle inter-subsidiary debts for the net amount owed during the post-transaction period
AnswerB.
A practice involving the sale of export accounts receivable to a third party within the TNC network
C.
A practice of purchasing an account receivable where the credit term exceeds the permissible limit within the TNC network
D.
Where the difference between international transaction of gross capital account receivables and payables are settled against current account receivables and payables
Answer: Option A
Solution
Answer: Option A
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