Accountancy, asked by Akanshasingh7148, 1 year ago

What is an irrevocable letter of credit?

Answers

Answered by Anonymous
0
HEY..
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AN IRRECOVERABLE LETTER OF CREDIT IS A FINANCIAL INSTRUMENT USED BY BANK TO GARANTEE A BUYERS OBLIGATION TO A SALER.

IT IS A IRRECOVERABLE BECAUSE THE LETTER OF CREDIT CANNOT BE MODIFIED UNLESS ALL PARTIES AGREE TO MODIFICATIONS.

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ACCOUNTING COACH + WHAT IS IRRECOVERABLE LETTER OF CREDIT.

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Answered by suraj3863
0
An irrevocable letter of credit is a financial instrument
used by banks to guarentee a buyer's obligations to a seller. It is irrevocable because the letter of credit cannot be modified unless all parties agree to the notifications.



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