When a company discounts a commercial bill to obtain funds,this means the company:
A) issues a commercial bill.
B) lends funds.
C) buys a commercial bill.
D) invests in commercial bills.

Question

Quizplus · Accepted Answer

When a company discounts a commercial bill, it essentially sells the bill (usually to a bank) before it matures at a price lower than its face value to obtain funds immediately. This does not involve issuing, lending, buying, or investing in commercial bills directly but rather selling a bill the company already holds.

When a Company Discounts a Commercial Bill to Obtain Funds,this