When It Is Not Possible to Determine the Status of the Party

question 84

Multiple Choice

When it is not possible to determine the status of the party, the general rule is that the party is considered the ________.

• A) maker
• B) acceptor
• C) drawer
• D) endorser
• E) endorsee

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Definitions:

Accounts

Records that summarize transactions related to a specific asset, liability, equity, revenue, or expense.

Prepayment

The payment of a bill, debt, or obligation before its due date, often securing a discount or avoiding penalties.

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed, recognized as a liability until the revenue earning criteria are met.

Landlord

An individual or entity that rents out real estate to tenants.