CIPS Exam L4M4 Topic 1 Question 8 Discussion

Actual exam question for CIPS's L4M4 exam

Question #: 8
Topic #: 1

[All L4M4 Questions]

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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Mirta

6 months ago

That's true, but with cash in advance, the buyer has control over the payment and avoids any risks.

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Matilda

7 months ago

I see your point, but open/credit account allows the buyer to pay later and build trust with the seller.

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Willetta

7 months ago

I disagree, I believe sight draft is better because the buyer can inspect the goods before paying.

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Mirta

7 months ago

I think cash in advance is most beneficial to the buyer.

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Lorita

8 months ago

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

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Alexia

8 months ago

Sight draft is also secure for the buyer.

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India

8 months ago

I agree, it eliminates the risk for the buyer.

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Lorita

8 months ago

Cash in advance is the most beneficial to the buyer.

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