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Before acceptance the bill is called a ______. - Book Keeping and Accountancy

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Question

Before acceptance the bill is called a ______.

Options

  • Order

  • Request

  • Draft

  • Instrument

MCQ
Fill in the Blanks
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Solution

Before acceptance, the bill is called a draft.

Explanation:

It is referred to as a draft because it is simply an order for payment created by the drawer that has not yet been signed and acknowledged (accepted) by the drawee.

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Chapter 7: Bills of Exchange - Exercise 7.1 (Objective Questions) [Page 301]

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Balbharati Book-Keeping and Accountancy [English] Standard 12 Maharashtra State Board
Chapter 7 Bills of Exchange
Exercise 7.1 (Objective Questions) | Q A. 2) | Page 301
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