A Demand Draft Is

question 39

Multiple Choice

A demand draft is

• A)a bill of exchange that is payable within a stipulated period,after presentation.
• B)a bill of exchange on which the expression demand draft is written.
• C)a bill of exchange that is payable within a stipulated period,after the date stated on the instrument.
• D)a bill of exchange that is payable immediately upon presentation without any days of grace.
• E)a bill of exchange that is payable at sight.

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Definitions:

Withdrawals

Withdrawals refer to the act of taking money out of a bank account, but in a business context, it often refers to the owner taking funds out of the business for personal use.

Income Summary

An account used in the closing process in accounting to gather all revenues and expenses for a period before transferring the net result to the capital account.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Expenses Closed

The process at the end of an accounting period where expense accounts are closed and their balances transferred to a summary account.