Accounting practices regarding merchandise imports on one’s own account, on short-term credit

Lucian Constantin Gabriel Budacia and Niculina Rosu-Hamzescu
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Niculina Rosu-Hamzescu: Romanian-American University Bucharest

Annals of University of Craiova - Economic Sciences Series, 2008, vol. 2, issue 36, 885-896

Abstract: The paper presents in the first part theoretical aspects regarding merchandise imports on one’s own account, on short term trade credit. In the second part it approaches a practical application of accounts related to merchandise imports on one’s own account, on short term trade credit. Foreign Trade Companies’ merchandise imports, as an indirect form of organizing foreign trade, contains the sum of operations by which merchandise necessary to the national economy is bought for production or individual consumption. Just like exporting, importing can be done by foreign trade companies on their own account, or on commission. In indirect importing, on foreign trade companies’ own account, the abovementioned act on foreign markets and onward on the internal market, in their own name, on their own account, and at their own risk. Thus, the financial results of the import activity are reflected, in full, in the administration of the importing foreign trade company. Merchandise imports bought on credit, i.e. imports for which payment is made at a particular date, is determined by the shortage of financial resources of the importer. It is common practice both for simple and complex merchandise, however, generally complex merchandise is more frequently the subject of on credit acquisitions.

Keywords: import; merchandise; accounting; credit. (search for similar items in EconPapers)
JEL-codes: E00 E20 M00 M41 (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:aio:aucsse:v:2:y:2008:i:11:p:885-896

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