In June,The Seascape Gallery sells an oil painting to Collegiate Systems,Inc.Collegiate promises to pay for the painting in three months.The gallery prepares a draft ordering Collegiate Systems to pay $3,000 to First Bank on September 15.Collegiate Systems signs the draft.The draft is a:
A) sight draft.
B) time draft.
C) trade acceptance.
D) Both b and c

Question

Quizplus · Accepted Answer

The draft is a time draft because it specifies a future date for payment (September 15). It is also a trade acceptance because Collegiate Systems, the buyer, has accepted the draft by signing it, agreeing to pay the specified amount at the specified future date.

In June,The Seascape Gallery Sells an Oil Painting to Collegiate