Which of the Following Is True About a Trade Acceptance

question 11

Multiple Choice

Which of the following is true about a trade acceptance?

• A)The buyer is the payee.
• B)The seller is both the drawer and payee.
• C)The draft is countersigned by the drawee's bank.
• D)The draft is only as good as the drawer's creditworthiness.

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Definitions:

Control

The power to govern the financial and operating policies of an organization so as to obtain benefits from its activities.

Investee

A company or entity in which an investor holds an interest, typically through ownership of shares.

Acquisition Cost

The total cost associated with acquiring an asset or investment, including the purchase price and all related expenses.

Due Diligence Fees

Costs associated with the research and analysis conducted before entering into an agreement or transaction.