An Acceptance Is a Receivable from the Sale of Merchandise

question 144

True/False

An acceptance is a receivable from the sale of merchandise on the basis of a draft or bill of exchange drawn against the buyer or the buyer's bank.

---

Definitions:

NSF Check

A check that cannot be processed due to insufficient funds in the account it's drawn on.

Petty Cash Fund

A small amount of cash kept on hand for minor, incidental expenses of a business.

Journal Entries

Records of financial transactions in the accounting system, ensuring every movement of funds is documented.

Office Supplies

Items and materials used in offices for daily operations, including paper, pens, and other stationery.