A(n)___________ Is an Unconditional Promise Drawn by One Party,instructing the Buyer

question 3

Multiple Choice

A(n) ___________ is an unconditional promise drawn by one party,instructing the buyer to pay the face amount upon presentation.

• A) draft
• B) bill of lading
• C) trade acceptance
• D) letter of credit

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, often used for managing liquidity and ensuring a company can meet its short-term obligations.

Budgeted Monthly Sales

An estimation of the sales revenue that a business expects to achieve in a particular month.

Other Payments

Refers to miscellaneous or additional payments that are outside the regular or expected transactions.

Cash Conversion Cycle

An index quantifying the period a business needs to turn its investments in inventory and other assets into cash flows generated through sales.