A banker's cheque, also known as a bank draft, is a payment instrument issued by a bank on behalf of a payer, which provides a guarantee of the funds because the bank holds the amount before issuing the cheque.
A sight draft, also known as a documentary draft, is a type of financial instrument or bill of exchange that is payable upon presentation, typically used in international trade to facilitate the payment for goods and services.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.