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The reason for sending a proforma invoice to a potential customer is that it is?

Commerce
WAEC 2018

The reason for sending a proforma invoice to a potential customer is that it is?

  • A. an indication of the seller's willingness to grant credit
  • B. a polite way of telling the customer to return the goods
  • C. an invitation to the buyer to buy on hire purchase
  • D. a polite way of refusing to sell on credit
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Correct Answer: Option D
Explanation

A proforma invoice is an estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods. It notes the kind and quantity of goods, their value, and other important information such as weight and transportation charges.

A pro forma invoice is generally raised when the seller is ready for dispatching the goods but they want to ensure that the payment is being sent before dispatch.


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now