The Person or Company to Whom a Check Is Payable

question 55

Multiple Choice

The person or company to whom a check is payable is called the:

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

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Definitions:

Manufacturing Business

A company engaged in the production of goods by processing raw materials into finished products.

Merchandising Business

A type of business that purchases goods for resale to customers, making profits from the markup over the cost of goods sold.

Limited Liability Company

An organizational form blending the direct tax system of a sole proprietorship or partnership with the reduced liability features of a corporation.

Cost Concept

An accounting principle that states all assets and services purchased by a company should be recorded at their cost price.