A Banker's Acceptance Is Created When

question 84

Multiple Choice

A banker's acceptance is created when

• A)is a document issued by the common carrier specifying that it has received the foods for shipment; it can serve as title to the goods.
• B)after taking title to the goods via a bill of lading, the importer's bank accepts the time draft.
• C)a time draft that calls for payment upon physical delivery of goods matures.
• D)none of the above

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Definitions:

Overvalued

Refers to a situation where the price of an asset exceeds its intrinsic value, often due to speculative demand.

Consolidated Equipment

Consolidated Equipment collectively refers to the physical assets reported on a consolidated financial statement, encompassing all subsidiaries and the parent company.

Voting Stock

Shares that give the shareholder the right to vote on corporate matters, such as electing the board of directors.

Contingent Payment

A payment that depends on the occurrence of a specific event or the meeting of certain conditions in the future.