ACCEPTANCE Definition

Bookmark and Share

ACCEPTANCE is a drawees promise to pay either a TIME DRAFT or SIGHT DRAFT. Normally, the acceptor signs his/her name after writing "accepted" (or some other words indicating acceptance) on the bill along with the date. That "acceptance" effectively makes the bill a promissory note, i.e. the acceptor is the maker and the drawer is the endorser.

Learn new Accounting Terms

BATCHING, in accounting, is the gathering and organizing of incoming invoices prior to processing.

NORMAL SPOILAGE consists of defective units that arise as part of regular operations. If normal spoilage arises from the requirements of a specific job, the cost of the spoiled units is charged to the job.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.