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when a bill is negotiated to a bank , it is said to be?

Accounts - Principles of Accounts
JAMB 2018

when a bill is negotiated to a bank , it is said to be?

  • A. accepted
  • B. discounted
  • C. surrendered
  • D. cashed
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Correct Answer: Option B
Explanation

A bill discounting involves effectively selling a bill to a bank for an amount that is slightly less than the par value and before the maturity date associated with the bill of exchange.


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WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995