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
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.