The Person or Company to Whom a Cheque Is Payable

question 145

Multiple Choice

The person or company to whom a cheque is payable is called the

• A) payer.
• B) drawer.
• C) drawee.
• D) payee.

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Definitions:

Operating Capacity

The maximum output that a company can produce under normal conditions over a specific period.

Differential Cost

Differential cost, also known as incremental cost, is the difference in total cost that will result from selecting one option over another in decision-making processes.

Unused Capacity

Represents the available production or service facility capability that is not being utilized to its full potential.

Condensed Income Statement

A simplified financial statement that highlights a company's revenues, expenses, and profits over a specific period, omitting detailed line items.