A trade acceptance, when immediate payment is not required, is a(n)
A)sight draft.
B)time draft.
C)bill of lading.
D)open account.

Question

Quizplus · Accepted Answer

A trade acceptance is a type of bill of exchange that allows the buyer to defer payment until a later date, typically 30, 60, or 90 days after the goods are received. This is known as a time draft, as opposed to a sight draft which requires immediate payment upon presentation. A bill of lading is a document that serves as evidence of receipt and transport of goods, and an open account is a credit arrangement between a buyer and seller where payment is due at a later date, but neither of these terms specifically refer to a trade acceptance.

A Trade Acceptance, When Immediate Payment Is Not Required, Is