Question

Quantity Sales Corporation and Resources Purchasing Company enter a contract for a sale of processed silver. Quantity Sales draws a draft unconditionally ordering Resources Purchasing to pay $50,000 to Quantity Sales's order in sixty days. Resources Purchasing signs and dates the draft. This instrument is

a. a banker's acceptance.
b. a nonnegotiable instrument.
c. a promissory note.
d. a trade acceptance.

Answer 1

Answer: (D) A trade acceptance

Explanation:

  A trade acceptance is basically refers to the time draft that is generally used for the financial purpose in an organization at the time of sale the different types of products.

A trade of acceptance is one of the type of document which basically required the acknowledges for the purpose of acceptance that specific debt existence.

The trade of acceptance document is used in an organization at that specific time when one organization are agree for paying the other company for the purpose of exchange various types of goods and the services.

 Therefore, Option (D) is correct answer.