In the Month of May, Lopat Company Inc

question 57

Multiple Choice

In the month of May, Lopat Company Inc.wrote checks in the amount of $74,000.In June, checks in the amount of $101,264 were written.In May, $67,744 of these checks were presented to the bank for payment and $87,064 in June.What is the amount of outstanding checks at the end of May?

• A)$14,200.
• B)$6,256.
• C)$20,456.
• D)$28,400.

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Definitions:

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Negotiable

Able to be transferred or endorsed to another party in exchange for money or as part of a contractual agreement.

Medium of Exchange

An intermediary instrument used to facilitate the sale, purchase, or trade of goods and services between parties.

Negotiable

Capable of being discussed in order to reach an agreement or capable of being transferred by endorsement or delivery.