A sight draft that arises when credit is extended with the sale of the goods is known as:

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A trade acceptance is a type of sight draft that arises when credit is extended with the sale of goods. It is a written order to pay a certain amount of money, drawn by the buyer of goods on the seller, which is payable at a specified future date. This type of sight draft is commonly used in trade transactions where the buyer needs time to pay for the goods purchased, while the seller seeks to avoid credit risks.

A Sight Draft That Arises When Credit Is Extended with the Sale