An Endorsement That Specifies Precisely How the Check May Be

question 86

Multiple Choice

An endorsement that specifies precisely how the check may be redeemed, such as only for deposit in the practice's bank account, is a ____.

• A) restrictive endorsement
• B) qualified endorsement
• C) blank endorsement
• D) mechanical endorsement
• E) special endorsement

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Definitions:

Long-Term Bank Loan

A debt financing obligation issued by a bank or financial institution to a company, with a repayment period exceeding one year.

Operating Activities

Business activities directly related to the production, sale, and delivery of a company's products or services, often reflected in the cash flow statement.

Prepaid Expenses

Costs paid for in advance of receiving the benefit of the service or product, recorded as an asset on the balance sheet until the expense is incurred.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.