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

question 28

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 check.
• C) forwards the acceptance to the seller until due.
• D)treats the purchase as a conditional sale.

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Definitions:

Surplus Material

Excess materials that are left over after the production process or not used within an operation.

Material B39U

is a specific type of raw material, possibly designated for use in a specialized manufacturing process, but without further context, its exact nature is unclear.

Supervisor's Salary

The amount paid to the individual overseeing and managing a group of employees or a particular department within a company.

Net Operating Income

Net operating income reflects the profit a company makes from its operations, exclusive of taxes and interest.