A ____ Is an Unconditional Promise Drawn by One Party

question 43

Multiple Choice

A ____ is an unconditional promise drawn by one party, instructing the buyer to pay the face amount upon presentation.

• A) draft
• B) bill of lading
• C) trade acceptance
• D) letter of credit

---

Definitions:

Journal Entry

A journal entry is a record in the books of accounts that represents a business transaction, detailing the accounts affected and the amounts.

Financial Statements

Reports detailing a company's financial performance, position, and cash flows, including balance sheet, income statement, and statement of cash flows.

Analyze Transaction

The process of reviewing and breaking down a financial transaction to understand its impact on the accounting equation.

Trial Balance

A bookkeeping worksheet listing the balances of all ledgers in two columns, debits and credits, to verify that the total debits equal total credits.