Once accepted by the drawee,a time draft becomes a(n)
A)asset for the drawee.
B)in-transit bill.
C)promise to pay by the accepting party.
D)bill of lading.
E)letter of credit.

Question

Quizplus · Accepted Answer

Once accepted by the drawee, a time draft becomes a promise to pay by the accepting party. The drawee is essentially agreeing to pay the amount specified on the draft at a future date. This acceptance turns the time draft into a legal and binding obligation. Therefore, option C is the correct answer. Options A, B, D, and E do not accurately describe the nature of a time draft once it is accepted.

Once Accepted by the Drawee,a Time Draft Becomes A(n)