A Check Drawn on a Bank Is an Order to Pay

question 11

Multiple Choice

A check drawn on a bank is an order to pay a sum of money and an authorization to charge the amount to the drawer's account.The drawer may countermand this order by which of the following?

• A) A canceled check
• B) A stop payment order
• C) A banker's acceptance
• D) A time draft

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Definitions:

Activity Cost Pools

A method in cost accounting where costs are accumulated according to activities performed, for allocating overhead costs more accurately to products or services.

Batch-level Activities

Operations or tasks that are performed for each batch of products, regardless of the size of the batch.

Units

Generally refers to the quantitative measure of output or production in business operations.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products based on a certain activity base, such as labor hours or machine hours.