Accounting Dictionary - Letter L
is a promise of one party to pay a stated amount to another party when the terms and conditions listed in the letter are complied with (e.g., when merchandise is delivered). Letters of credit are usually used in international trade. For example, a bank authorizes an exporter to draw on account within a stated amount and time in payment for specified merchandise to be shipped abroad.
Don't see the term you are looking for? Try searching our entire website:
Not a member?
See why people join our
online accounting course:
online accounting course:
