Acceptance: All parties involved in a bill of exchange need to accept the terms and conditions implied in the bill and endorse their acceptance with signatures. 3] Acceptance must be communicated This means that revenue recognition may be predicated on the exact wording of sale agreements, where customers are allowed to withhold their approval subject to testing and other criteria. Acceptance, short-term credit instrument consisting of a written order requiring a buyer to pay a specified sum at a given date to the seller, signed by the buyer as an indication of his intention to honour his obligation. Acceptance Testing: A functional trial performed on a product before it is put on the market or delivered to the purchaser. The Securities and Exchange Commission does not approve of revenue recognition until the uncertainty surrounding customer acceptance has been resolved. What is Customer Acceptance Uncertainty? See more. This approach does not measure the relative quality of a population. Receive Payment of the Bills Receivable. Implied acceptance can also be given through some conduct, act, etc. Bank Account: It is also mandatory for a bill of exchange to mention the details of the bank where the drawee is required to pay the amount stated in the bill. A short-term credit instrument created by a nonfinancial firm and guaranteed by a bank as to payment. Acceptance definition, the act of taking or receiving something offered. A banker's acceptance is a short-term issuance by a bank that guarantees payment at a later time. Acceptance sampling is the examination of a random sample from a population, to see if the number of issues found would allow the population from which it is drawn to be accepted. However, the law does not allow silence to be a form of acceptance. The debit transfers the amount due from the accounts receivable account to the bills receivable account on acceptance of the bill of exchange by the customer. The credit is to clear the customer’s accounts receivable account. Acceptance Now - no credit needed or long-term obligation for furniture, appliances, computers and electronics. The acceptance testing process is designed to … Acceptance house or accepting house is a financial enterprise whose principle function lies in facilitating the negotiation of bills of exchange either by accepting them or guaranteeing them. Easy monthly payments or own with early purchase. Acceptances are traded at discounts from face value in the secondary market on the basis of the credit quality of the guaranteeing banks. So the offeror cannot say if no answer is received the offer will be deemed as accepted.