Sight draft Credit Instruments: These are the documents or instruments used in replacement of currency. They are widely accepted nowadays. It is of many types.

Question

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Answer 1

Question

Chapter 28, Problem 1CQ

a.

Summary Introduction

To explain: Sight draft

Credit Instruments:

These are the documents or instruments used in replacement of currency. They are widely accepted nowadays. It is of many types.

a.

Expert Solution

Answer to Problem 1CQ

Sight draft

It is a type of bill of exchange which is payable immediately.
It is used in international trade.

Explanation of Solution

In this bill of exchange, payment cannot be delayed after presenting the draft.
It is payable as soon as the seller shows the draft to buyer.
There is no specific date of its maturity.

Conclusion

Sight draft is a type of bill of exchange which is payable immediately.

b.

Summary Introduction

To explain: Time draft

b.

Expert Solution

Answer to Problem 1CQ

Time draft

It is a type of bill of exchange.
It is payable after a definite period of time or after happening of a particular situation.

Explanation of Solution

It is a promise to pay in future.
It is used with acceptance.
It is generally used in international trade.

Conclusion

Time draft is payable after a definite period of time

c.

Summary Introduction

To explain: Banker’s acceptance

c.

Expert Solution

Answer to Problem 1CQ

Bankers acceptance

It is a type of bill of exchange.
It is a short-term instrument.

Explanation of Solution

It is a bill of exchange instrument, which is guaranteed by bank.
It is a safe instrument.

Conclusion

Bankers acceptance is guaranteed by bank.

d.

Summary Introduction

To explain: Promissory Note

d.

Expert Solution

Answer to Problem 1CQ

Promissory Note

It is a type of financial instrument.
The maker signs it.

Explanation of Solution

In this note one party signs and promises to pay in writing a certain amount of money to the other party.
It is paid in future or under a particular situation.
The one who signs and writes the note is the maker and other party is payee.

Conclusion

Promissory Note is the one in which one party signs and promises to pay in writing a certain amount of money to the other party.

e.

Summary Introduction

To explain: Trade acceptance

e.

Expert Solution

Answer to Problem 1CQ

Trade acceptance

It is a type of bill of exchange.
In this instrument the bank is not involved.

Explanation of Solution

Purchaser on purchase of goods and services directly accepts this note.
It is due at future time period.
It is drawn by the purchaser for purchase of goods.
Drawer for sale of goods draws it.

Conclusion

The purchaser on purchase of goods and services directly accepts trade acceptance.

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Students have asked these similar questions

The receivable that is usually evidenced by a formal instrument of credit is a(n) Select one: a. trade receivable. b. accounts receivable. C. note receivable. d. income tax receivable.

Define each of the following terms:k. Accruals; trade credit

Defining common receivables terms Match the terms with their correct definition.

Answer 2

Question

Chapter 28, Problem 1CQ

a.

Summary Introduction

To explain: Sight draft

Credit Instruments:

These are the documents or instruments used in replacement of currency. They are widely accepted nowadays. It is of many types.

a.

Expert Solution

Answer to Problem 1CQ

Sight draft

It is a type of bill of exchange which is payable immediately.
It is used in international trade.

Explanation of Solution

In this bill of exchange, payment cannot be delayed after presenting the draft.
It is payable as soon as the seller shows the draft to buyer.
There is no specific date of its maturity.

Conclusion

Sight draft is a type of bill of exchange which is payable immediately.

b.

Summary Introduction

To explain: Time draft

b.

Expert Solution

Answer to Problem 1CQ

Time draft

It is a type of bill of exchange.
It is payable after a definite period of time or after happening of a particular situation.

Explanation of Solution

It is a promise to pay in future.
It is used with acceptance.
It is generally used in international trade.

Conclusion

Time draft is payable after a definite period of time

c.

Summary Introduction

To explain: Banker’s acceptance

c.

Expert Solution

Answer to Problem 1CQ

Bankers acceptance

It is a type of bill of exchange.
It is a short-term instrument.

Explanation of Solution

It is a bill of exchange instrument, which is guaranteed by bank.
It is a safe instrument.

Conclusion

Bankers acceptance is guaranteed by bank.

d.

Summary Introduction

To explain: Promissory Note

d.

Expert Solution

Answer to Problem 1CQ

Promissory Note

It is a type of financial instrument.
The maker signs it.

Explanation of Solution

In this note one party signs and promises to pay in writing a certain amount of money to the other party.
It is paid in future or under a particular situation.
The one who signs and writes the note is the maker and other party is payee.

Conclusion

Promissory Note is the one in which one party signs and promises to pay in writing a certain amount of money to the other party.

e.

Summary Introduction

To explain: Trade acceptance

e.

Expert Solution

Answer to Problem 1CQ

Trade acceptance

It is a type of bill of exchange.
In this instrument the bank is not involved.

Explanation of Solution

Purchaser on purchase of goods and services directly accepts this note.
It is due at future time period.
It is drawn by the purchaser for purchase of goods.
Drawer for sale of goods draws it.

Conclusion

The purchaser on purchase of goods and services directly accepts trade acceptance.

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Answer 3

Question

Chapter 28, Problem 1CQ

a.

Summary Introduction

To explain: Sight draft

Credit Instruments:

These are the documents or instruments used in replacement of currency. They are widely accepted nowadays. It is of many types.

a.

Expert Solution

Answer to Problem 1CQ

Sight draft

It is a type of bill of exchange which is payable immediately.
It is used in international trade.

Explanation of Solution

In this bill of exchange, payment cannot be delayed after presenting the draft.
It is payable as soon as the seller shows the draft to buyer.
There is no specific date of its maturity.

Conclusion

Sight draft is a type of bill of exchange which is payable immediately.

b.

Summary Introduction

To explain: Time draft

b.

Expert Solution

Answer to Problem 1CQ

Time draft

It is a type of bill of exchange.
It is payable after a definite period of time or after happening of a particular situation.

Explanation of Solution

It is a promise to pay in future.
It is used with acceptance.
It is generally used in international trade.

Conclusion

Time draft is payable after a definite period of time

c.

Summary Introduction

To explain: Banker’s acceptance

c.

Expert Solution

Answer to Problem 1CQ

Bankers acceptance

It is a type of bill of exchange.
It is a short-term instrument.

Explanation of Solution

It is a bill of exchange instrument, which is guaranteed by bank.
It is a safe instrument.

Conclusion

Bankers acceptance is guaranteed by bank.

d.

Summary Introduction

To explain: Promissory Note

d.

Expert Solution

Answer to Problem 1CQ

Promissory Note

It is a type of financial instrument.
The maker signs it.

Explanation of Solution

In this note one party signs and promises to pay in writing a certain amount of money to the other party.
It is paid in future or under a particular situation.
The one who signs and writes the note is the maker and other party is payee.

Conclusion

Promissory Note is the one in which one party signs and promises to pay in writing a certain amount of money to the other party.

e.

Summary Introduction

To explain: Trade acceptance

e.

Expert Solution

Answer to Problem 1CQ

Trade acceptance

It is a type of bill of exchange.
In this instrument the bank is not involved.

Explanation of Solution

Purchaser on purchase of goods and services directly accepts this note.
It is due at future time period.
It is drawn by the purchaser for purchase of goods.
Drawer for sale of goods draws it.

Conclusion

The purchaser on purchase of goods and services directly accepts trade acceptance.

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Answer 4

Question

Chapter 28, Problem 1CQ

a.

Summary Introduction

To explain: Sight draft

Credit Instruments:

These are the documents or instruments used in replacement of currency. They are widely accepted nowadays. It is of many types.

a.

Expert Solution

Answer to Problem 1CQ

Sight draft

It is a type of bill of exchange which is payable immediately.
It is used in international trade.

Explanation of Solution

In this bill of exchange, payment cannot be delayed after presenting the draft.
It is payable as soon as the seller shows the draft to buyer.
There is no specific date of its maturity.

Conclusion

Sight draft is a type of bill of exchange which is payable immediately.

b.

Summary Introduction

To explain: Time draft

b.

Expert Solution

Answer to Problem 1CQ

Time draft

It is a type of bill of exchange.
It is payable after a definite period of time or after happening of a particular situation.

Explanation of Solution

It is a promise to pay in future.
It is used with acceptance.
It is generally used in international trade.

Conclusion

Time draft is payable after a definite period of time

c.

Summary Introduction

To explain: Banker’s acceptance

c.

Expert Solution

Answer to Problem 1CQ

Bankers acceptance

It is a type of bill of exchange.
It is a short-term instrument.

Explanation of Solution

It is a bill of exchange instrument, which is guaranteed by bank.
It is a safe instrument.

Conclusion

Bankers acceptance is guaranteed by bank.

d.

Summary Introduction

To explain: Promissory Note

d.

Expert Solution

Answer to Problem 1CQ

Promissory Note

It is a type of financial instrument.
The maker signs it.

Explanation of Solution

In this note one party signs and promises to pay in writing a certain amount of money to the other party.
It is paid in future or under a particular situation.
The one who signs and writes the note is the maker and other party is payee.

Conclusion

Promissory Note is the one in which one party signs and promises to pay in writing a certain amount of money to the other party.

e.

Summary Introduction

To explain: Trade acceptance

e.

Expert Solution

Answer to Problem 1CQ

Trade acceptance

It is a type of bill of exchange.
In this instrument the bank is not involved.

Explanation of Solution

Purchaser on purchase of goods and services directly accepts this note.
It is due at future time period.
It is drawn by the purchaser for purchase of goods.
Drawer for sale of goods draws it.

Conclusion

The purchaser on purchase of goods and services directly accepts trade acceptance.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 28, Problem 1CQ

a.

Summary Introduction

To explain: Sight draft

Credit Instruments:

These are the documents or instruments used in replacement of currency. They are widely accepted nowadays. It is of many types.

a.

Expert Solution

Answer to Problem 1CQ

Sight draft

It is a type of bill of exchange which is payable immediately.
It is used in international trade.

Explanation of Solution

In this bill of exchange, payment cannot be delayed after presenting the draft.
It is payable as soon as the seller shows the draft to buyer.
There is no specific date of its maturity.

Conclusion

Sight draft is a type of bill of exchange which is payable immediately.

b.

Summary Introduction

To explain: Time draft

b.

Expert Solution

Answer to Problem 1CQ

Time draft

It is a type of bill of exchange.
It is payable after a definite period of time or after happening of a particular situation.

Explanation of Solution

It is a promise to pay in future.
It is used with acceptance.
It is generally used in international trade.

Conclusion

Time draft is payable after a definite period of time

c.

Summary Introduction

To explain: Banker’s acceptance

c.

Expert Solution

Answer to Problem 1CQ

Bankers acceptance

It is a type of bill of exchange.
It is a short-term instrument.

Explanation of Solution

It is a bill of exchange instrument, which is guaranteed by bank.
It is a safe instrument.

Conclusion

Bankers acceptance is guaranteed by bank.

d.

Summary Introduction

To explain: Promissory Note

d.

Expert Solution

Answer to Problem 1CQ

Promissory Note

It is a type of financial instrument.
The maker signs it.

Explanation of Solution

In this note one party signs and promises to pay in writing a certain amount of money to the other party.
It is paid in future or under a particular situation.
The one who signs and writes the note is the maker and other party is payee.

Conclusion

Promissory Note is the one in which one party signs and promises to pay in writing a certain amount of money to the other party.

e.

Summary Introduction

To explain: Trade acceptance

e.

Expert Solution

Answer to Problem 1CQ

Trade acceptance

It is a type of bill of exchange.
In this instrument the bank is not involved.

Explanation of Solution

Purchaser on purchase of goods and services directly accepts this note.
It is due at future time period.
It is drawn by the purchaser for purchase of goods.
Drawer for sale of goods draws it.

Conclusion

The purchaser on purchase of goods and services directly accepts trade acceptance.

Answer 6

Chapter 28, Problem 1CQ

a.

Summary Introduction

To explain: Sight draft

Credit Instruments:

These are the documents or instruments used in replacement of currency. They are widely accepted nowadays. It is of many types.

a.

Expert Solution

Answer to Problem 1CQ

Sight draft

It is a type of bill of exchange which is payable immediately.
It is used in international trade.

Explanation of Solution

In this bill of exchange, payment cannot be delayed after presenting the draft.
It is payable as soon as the seller shows the draft to buyer.
There is no specific date of its maturity.

Conclusion

Sight draft is a type of bill of exchange which is payable immediately.

Answer 7

Chapter 28, Problem 1CQ

a.

Summary Introduction

To explain: Sight draft

Credit Instruments:

These are the documents or instruments used in replacement of currency. They are widely accepted nowadays. It is of many types.

Answer 8

a.

Expert Solution

Answer to Problem 1CQ

Sight draft

It is a type of bill of exchange which is payable immediately.
It is used in international trade.

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

In this bill of exchange, payment cannot be delayed after presenting the draft.
It is payable as soon as the seller shows the draft to buyer.
There is no specific date of its maturity.

Answer 13

Conclusion

Sight draft is a type of bill of exchange which is payable immediately.

Answer 14

b.

Summary Introduction

To explain: Time draft

b.

Expert Solution

Answer to Problem 1CQ

Time draft

It is a type of bill of exchange.
It is payable after a definite period of time or after happening of a particular situation.

Explanation of Solution

It is a promise to pay in future.
It is used with acceptance.
It is generally used in international trade.

Conclusion

Time draft is payable after a definite period of time

Answer 15

b.

Summary Introduction

To explain: Time draft

Answer 16

b.

Expert Solution

Answer to Problem 1CQ

Time draft

It is a type of bill of exchange.
It is payable after a definite period of time or after happening of a particular situation.

Answer 17

b.

Expert Solution

Answer 18

b.

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

It is a promise to pay in future.
It is used with acceptance.
It is generally used in international trade.

Answer 21

Conclusion

Time draft is payable after a definite period of time

Answer 22

c.

Summary Introduction

To explain: Banker’s acceptance

c.

Expert Solution

Answer to Problem 1CQ

Bankers acceptance

It is a type of bill of exchange.
It is a short-term instrument.

Explanation of Solution

It is a bill of exchange instrument, which is guaranteed by bank.
It is a safe instrument.

Conclusion

Bankers acceptance is guaranteed by bank.

Answer 23

c.

Summary Introduction

To explain: Banker’s acceptance

Answer 24

c.

Expert Solution

Answer to Problem 1CQ

Bankers acceptance

It is a type of bill of exchange.
It is a short-term instrument.

Answer 25

c.

Expert Solution

Answer 26

c.

Expert Solution

Answer 27

Expert Solution

Answer 28

Explanation of Solution

It is a bill of exchange instrument, which is guaranteed by bank.
It is a safe instrument.

Answer 29

Conclusion

Bankers acceptance is guaranteed by bank.

Answer 30

d.

Summary Introduction

To explain: Promissory Note

d.

Expert Solution

Answer to Problem 1CQ

Promissory Note

It is a type of financial instrument.
The maker signs it.

Explanation of Solution

In this note one party signs and promises to pay in writing a certain amount of money to the other party.
It is paid in future or under a particular situation.
The one who signs and writes the note is the maker and other party is payee.

Conclusion

Promissory Note is the one in which one party signs and promises to pay in writing a certain amount of money to the other party.

Answer 31

d.

Summary Introduction

To explain: Promissory Note

Answer 32

d.

Expert Solution

Answer to Problem 1CQ

Promissory Note

It is a type of financial instrument.
The maker signs it.

Answer 33

d.

Expert Solution

Answer 34

d.

Expert Solution

Answer 35

Expert Solution

Answer 36

Explanation of Solution

In this note one party signs and promises to pay in writing a certain amount of money to the other party.
It is paid in future or under a particular situation.
The one who signs and writes the note is the maker and other party is payee.

Answer 37

Conclusion

Promissory Note is the one in which one party signs and promises to pay in writing a certain amount of money to the other party.

Answer 38

e.

Summary Introduction

To explain: Trade acceptance

e.

Expert Solution

Answer to Problem 1CQ

Trade acceptance

It is a type of bill of exchange.
In this instrument the bank is not involved.

Explanation of Solution

Purchaser on purchase of goods and services directly accepts this note.
It is due at future time period.
It is drawn by the purchaser for purchase of goods.
Drawer for sale of goods draws it.

Conclusion

The purchaser on purchase of goods and services directly accepts trade acceptance.

Answer 39

e.

Summary Introduction

To explain: Trade acceptance

Answer 40

e.

Expert Solution

Answer to Problem 1CQ

Trade acceptance

It is a type of bill of exchange.
In this instrument the bank is not involved.

Answer 41

e.

Expert Solution

Answer 42

e.

Expert Solution

Answer 43

Expert Solution

Answer 44

Explanation of Solution

Purchaser on purchase of goods and services directly accepts this note.
It is due at future time period.
It is drawn by the purchaser for purchase of goods.
Drawer for sale of goods draws it.

Answer 45

Conclusion

The purchaser on purchase of goods and services directly accepts trade acceptance.

Answer 46

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Sight draft Credit Instruments: These are the documents or instruments used in replacement of currency. They are widely accepted nowadays. It is of many types.

To explain: Sight draft Credit Instruments: These are the documents or instruments used in replacement of currency. They are widely accepted nowadays. It is of many types.

Answer to Problem 1CQ

Explanation of Solution

To explain: Time draft

Answer to Problem 1CQ

Explanation of Solution

To explain: Banker’s acceptance

Answer to Problem 1CQ

Explanation of Solution

To explain: Promissory Note

Answer to Problem 1CQ

Explanation of Solution

To explain: Trade acceptance

Answer to Problem 1CQ

Explanation of Solution

Want to see more full solutions like this?

Chapter 28 Solutions

To explain: Sight draft

Credit Instruments:

These are the documents or instruments used in replacement of currency. They are widely accepted nowadays. It is of many types.