Open account is an arrangement between the seller whereby the goods are manufactured and d

elivered before payment is required. Open account provides for payment at some stated specific future date and without the buyer issuing any negotiable instrument evidencing his legal commitment. The seller must have absolute trust that he will be paid at the agreed date. The seller should recognize that in certain instances it is possible to discount open accounts receivable with a financial institution.

Through open account, the seller will manufacture goods before payment is required.

A．Right

B．Wrong

C．Doesn't say