Once Accepted by the Drawee,a Time Draft Becomes A(n)

question 118

Multiple Choice

Once accepted by the drawee,a time draft becomes a(n)

• A)asset for the drawee.
• B)in-transit bill.
• C)promise to pay by the accepting party.
• D)bill of lading.
• E)letter of credit.

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Definitions:

Unleveraged

Describes a situation or investment that does not involve borrowed funds or debt.

Break-Even EBIT

The level of earnings before interest and taxes that will cover all operating expenses and financial charges, resulting in zero net income or loss.

Coupon Rate

A bond's yearly interest payment, represented as a percentage of its face value.

Interest Tax Shield

A decrease in income tax obligations due to subtracting debt interest payments from taxable income.