IBM Trade Operations Officer Interview Questions and Answers

The advising bank plays a crucial role in international trade transactions by providing guidance and assistance to both the exporter and importer.

• The advising bank acts as an intermediary between the exporter's bank and the importer's bank.

• It verifies the authenticity of the letter of credit (LC) issued by the importer's bank to ensure its compliance with the terms and conditions.

• The advising bank advises the exporter ...read more

Discounting and TR are both financial concepts, but they have different meanings and applications.

• Discounting refers to the process of determining the present value of future cash flows by applying a discount rate.

• TR, on the other hand, stands for Trade Receivables and represents the amount owed to a company by its customers for goods or services provided.

• Discounting is a financial calculation used to evaluate investme...read more

Check points in discounting

• Verify the accuracy of the discount rate applied

• Ensure the correct calculation of the discounted amount

• Confirm the eligibility of the transaction for discounting

• Validate the supporting documentation for the discounting process

• Review any applicable terms and conditions for discounting

• Check for any restrictions or limitations on the discounting process

The account to be debited and credited at the time of discounting depends on the specific transaction and the parties involved.

• In general, the account to be debited is the Discount Allowed account, which represents the expense incurred by the seller for providing the discount.

• The account to be credited is typically the Accounts Receivable account, which represents the amount owed by the buyer for the discounted goods o...read more