Which One of the Following Statements Correctly Describes a Credit

question 273

Multiple Choice

Which one of the following statements correctly describes a credit instrument?

• A) All credit sales of a commercial nature are accompanied by a promissory note.
• B) A time draft requires payment at the time the goods are delivered.
• C) A commercial draft is signed once the goods are received in good shape by the buyer.
• D) A banker's acceptance is a sight draft for which payment has been guaranteed in the future by a bank.
• E) Under a conditional sales contract, the seller retains legal possession of the good sold until the sales invoice has been paid in full.

---

Definitions:

Widgets

A generic term for an unspecified device or product, often used in examples or discussions about manufacturing.

Bid

An offer of a specific price for goods or services, especially in the context of auctions or competitive bidding processes.

Market Maker

An entity that buys and sells securities from their own inventory to maintain liquidity and facilitate trading in financial markets.

Widgets

A generic term often used to refer to any product or manufactured good.