When a time draft is presented to a drawee, the company signifies acceptance of it by
A) delivering the goods immediately.
B) paying the draft amount immediately.
C) providing a collateral for the amount specified in the bill.
D) writing or stamping a notice of acceptance on its face.
E) selling the draft to an investor at a discount from its face value.

Question

Quizplus · Accepted Answer

The drawee signifies acceptance of a time draft by writing or stamping a notice of acceptance on its face, indicating their commitment to pay the specified amount at a future date.

When a Time Draft Is Presented to a Drawee, the Company