Vidyalelo
Commerce · Q354

Accounting

Graduate and Post Graduate · Commerce · question 354

Q354

Accommodation bill is drawn

A.
To finance actual purchase or sale of goods
B.
To facilitate trade transmission
C.
To cater the fund requirements of both the parties
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
Solution:
Accommodation bill is drawn to cater the fund requirements of both the parties. A bill, draft, or note made, drawn, accepted, or endorsed by one person for another without consideration to enable that other to raise money or obtain credit thereby.