Which one of the following statements is false?
A) Commercial drafts represent a way to obtain a credit commitment from a customer before the goods are delivered.
B) When a banker's acceptance is discounted in the secondary market it becomes a commercial note.
C) Sight drafts require immediate payment.
D) Banker's acceptances arise when a bank guarantees payment on a commercial draft.
E) A commercial draft becomes a trade acceptance once the buyer accepts the draft and promises to pay.
Correct Answer:
Verified
Q2: Seasonal dating of accounts receivable:
A)is used by
Q3: Which one of these statements is true
Q4: On September 1,a firm grants credit with
Q5: Selling goods and services on credit is:
A)an
Q6: The average collection period measures the average:
A)time
Q7: When credit is granted by one firm
Q8: Which one of the following statements is
Q9: The credit period begins on the:
A)shipping date.
B)purchase
Q10: The upper limit to the credit period
Q11: A commercial draft typically:
A)specifies the payment amount
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