When a business discounts a Bill receivable to a bank or financial broker, the business will generally receive either more or less than the maturity value of the bill.

Name: When a business discounts a Bill receivable to a bank or financial broker, the business will generally receive either more or less than the maturity value of the bill.
Brand: Quizplus
Rating: 4.7 (56 reviews)

Question

Quizplus · Accepted Answer

When a bill receivable is discounted, the bank or broker deducts a discount fee, resulting in the business receiving less than the maturity value.

When a Business Discounts a Bill Receivable to a Bank