Commerce Exam > Commerce Questions > _______ is drawn by the seller of goods to th...
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_______ is drawn by the seller of goods to the buyer and is returned by the buyer after accepting it
- a)Bill Receivable
- b)Debtor
- c)Creditor
- d)Bill Payable
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
_______ is drawn by the seller of goods to the buyer and is returned b...
Bill Receivable
Definition:
A bill receivable is a financial instrument that represents a promise to pay a certain amount of money at a specific future date. It is drawn by the seller of goods to the buyer and is returned by the buyer after accepting it.
Explanation:
When a seller sells goods on credit, it creates a bill receivable. The bill receivable is a legal document that serves as evidence of the debt owed by the buyer to the seller. The seller draws the bill and sends it to the buyer. The buyer accepts the bill, which means that the buyer agrees to pay the amount mentioned in the bill on the due date. The buyer then returns the accepted bill to the seller.
Features:
- It is a written promise to pay a certain amount of money.
- It contains the name of the buyer, the amount to be paid, the due date, and other relevant details.
- It is a negotiable instrument that can be transferred from one person to another.
- It is a legal document that can be used in a court of law to recover the money owed.
- It is an important tool for managing cash flow, as it allows the seller to receive payment at a future date.
Conclusion:
Bill receivables are important financial instruments that are used in commercial transactions. They provide a legal means for sellers to receive payment for goods sold on credit. Bill receivables can be used to manage cash flow, as they allow sellers to receive payment at a future date. They are also negotiable instruments that can be transferred from one person to another.
Definition:
A bill receivable is a financial instrument that represents a promise to pay a certain amount of money at a specific future date. It is drawn by the seller of goods to the buyer and is returned by the buyer after accepting it.
Explanation:
When a seller sells goods on credit, it creates a bill receivable. The bill receivable is a legal document that serves as evidence of the debt owed by the buyer to the seller. The seller draws the bill and sends it to the buyer. The buyer accepts the bill, which means that the buyer agrees to pay the amount mentioned in the bill on the due date. The buyer then returns the accepted bill to the seller.
Features:
- It is a written promise to pay a certain amount of money.
- It contains the name of the buyer, the amount to be paid, the due date, and other relevant details.
- It is a negotiable instrument that can be transferred from one person to another.
- It is a legal document that can be used in a court of law to recover the money owed.
- It is an important tool for managing cash flow, as it allows the seller to receive payment at a future date.
Conclusion:
Bill receivables are important financial instruments that are used in commercial transactions. They provide a legal means for sellers to receive payment for goods sold on credit. Bill receivables can be used to manage cash flow, as they allow sellers to receive payment at a future date. They are also negotiable instruments that can be transferred from one person to another.
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_______ is drawn by the seller of goods to the buyer and is returned b...
Bills receivable is a discount given to the buyer by the seller.
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_______ is drawn by the seller of goods to the buyer and is returned by the buyer after accepting ita)Bill Receivableb)Debtorc)Creditord)Bill PayableCorrect answer is option 'A'. Can you explain this answer?
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