When a Time Draft Is Drawn on and Accepted by a Business

question 24

Multiple Choice

When a time draft is drawn on and accepted by a business firm, it is known as a(n)

• A) trade acceptance.
• B) in-transit bill.
• C) banker's acceptance.
• D) bill of lading.
• E) letter of credit.

---

Definitions:

Planning Budget

A budget created before a period begins, outlining expected revenues, expenses, and other financial transactions, serving as a blueprint for financial performance.

Materials

General term referring to the raw inputs or resources used in the production of goods and services, encompassing both direct and indirect materials.

Planning Budget

A financial plan that outlines the expected revenues, expenses, and goals of an organization for a specific period.

Other Expenses

Costs not directly related to the production of goods or services, such as interest payments or losses from asset sales.