Asked by Michaela Trujillo on Jul 04, 2024
Verified
Bogart presents a sight draft to Commerce Bank for payment. A bank employee writes accepted across the face of the instrument, and adds the date and the bank's signature. The draft is
A) acknowledged as received, but not payable without further verification.
B) accepted and will be payable by the close of the next business day.
C) payable ninety days after sight.
D) payable immediately or within a stated time after sight.
Sight Draft
A financial instrument that is payable on presentation or sight to the drawer.
Payable
Refers to debts or obligations of an individual or company that are due to be paid to creditors.
Acknowledged
Recognized or accepted as valid or true by a person or entity.
- Understand the critical features that make an instrument negotiable.
Verified Answer
ZK
Zybrea KnightJul 07, 2024
Final Answer :
D
Explanation :
When a bank (or any drawee) writes "accepted" across the face of a sight draft, adds the date, and signs it, this constitutes an acceptance of the draft. This means the bank agrees to pay the draft either immediately or within a stated time after sight, as per the terms of the draft.
Learning Objectives
- Understand the critical features that make an instrument negotiable.
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