What Characteristics Are Necessary for a Draft to Be a Check

question 32

Multiple Choice

What characteristics are necessary for a draft to be a check?

• A) It contains an indorsement in blank.
• B) It is payable on demand,and the drawee is a bank.
• C) It is payable at a specific time and the drawee is a bank.
• D) There are no separate requirements; the requirements for a draft and a check are the same.

Determine the taxability of employer-paid premiums on life insurance based on coverage limits.

Analyze how savings bond interest exemption is affected by modified AGI and filing status.

Recognize various income items and their reporting requirements on tax returns.

Distinguish between taxable and non-taxable income types, including corporate dividends and social security benefits.

---

Definitions:

Accounts Payable

Liabilities of a business that represent its obligations to pay off short-term debts to its creditors or suppliers.

Common Stock

A form of investment indicating a share in a company's ownership, entitling the holder to a portion of its profits or losses.

Revenue

The income that a business receives from its normal business activities, typically from the sale of goods and services to customers.

Net Fixed Assets

The value of a company's property, plant, and equipment minus depreciation, representing the company's investment in long-term assets.