Terms of the sales contract must be reflected in the letter of credit, if not the buyer must clear all discrepancies upon examination of the letter of credit

Why are retained earnings considered equity?

a) Because they are effectively additional investment in the company by existing owners b) Because they are effectively an investment in the company by new owners c) Because they come about when a bank agrees to exchange its loan for equity in the firm d) Because they come about when new owners buy ownership stakes from existing owners

The general principle that 80% of a company's revenue is generated by 20% of its customers is known as the Pareto concept

Indicate whether the statement is true or false