Concept:A proforma invoice is a preliminary invoice sent by a seller before the goods are actually delivered.
Explanation:This document is not a final demand for payment.
It is a polite way of showing that the seller will not supply the goods on credit.
The seller raises a proforma invoice when the goods are ready for dispatch but payment has not yet been received.
It lists the type, quantity, and value of the goods, along with transport charges and other essential details.
By sending it, the seller asks the buyer to pay in advance before the goods are released.
Therefore, the seller is avoiding granting credit to the buyer.
This makes the proforma invoice a polite refusal to sell on credit.
It also gives the buyer full knowledge of the cost before payment is made.
Answer:D. A polite way of refusing to sell on credit.