The Statement Concerning Discounting a Bill Receivable That Is Incorrect

Multiple Choice

The statement concerning discounting a bill receivable that is incorrect is:

A) To be discounted,before it matures,a bill receivable may be sold to a bank in exchange for cash
B) In calculating the amount of discount on sale of the bill the discount rate is applied to its maturity value for the period it is held by the discounter
C) One of the disadvantages of a bill of exchange is the relative difficulty with which it can be converted into cash
D) The maturity value of the bill less the discount deducted by the bank is paid to the endorser of the bill by the bank