Under the Terms of a Sight Draft, the Buyer's Bank

question 58

Multiple Choice

Under the terms of a sight draft, the buyer's bank:

• A)Is instructed to make immediate payment
• B)Treats the invoice like a postdated cheques
• C)Forwards the acceptance to the seller until due
• D)Treats the purchase as a conditional sale

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Definitions:

Operating Results

The outcome of a company's core business activities, including revenue generation and expenses, over a specific period.

Fixed Cost

Costs that do not vary with the level of production or sales, remaining constant within a specific range of activity.

Contribution Margin

The difference between a company's sales revenue and its variable costs.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific business segment or operation.