Time Drafts

question 3

Multiple Choice

Time drafts:

• A)have no value given the deferred nature of document.
• B)are generally not preferred in international transaction.
• C)are negotiable instruments.
• D)are also called bills of lading.

---

Definitions:

Internally Generated

Refers to assets or resources that are created or produced within a company, rather than acquired from external sources.

Straight-Line Method

A method of calculating depreciation of an asset, which assumes the asset will lose an equal amount of value each year over its useful life.

Residual Value

The estimated value that an asset will have at the end of its useful life, also known as salvage value.

Gain Or Loss

The difference between the selling price and the purchase price of an asset, resulting in a financial profit or loss.