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.

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Definitions:

Minimum Payoff

The least amount of return or profit one can expect from an investment or decision.

Payoff Rate

The rate of return or profit that is expected or realized from an investment, operation, or decision.

ARM

A type of processor architecture known for its power efficiency, commonly used in mobile devices.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.