[Auto Repair] Sam Writes a Check from His Checking Account

question 66

Multiple Choice

[Auto Repair] Sam writes a check from his checking account with Banking International to pay Auto Repair for service work it performed on his vehicle.
-Under the UCC, what role does Banking International hold?

• A) Drawee
• B) Drawer
• C) Owner
• D) Payee
• E) Payor

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Definitions:

Direct Method

An approach to preparing the cash flow statement where actual cash flows from operating activities are listed.

Support Departments

Units within an organization that provide services or support to the operational departments, but do not directly contribute to the production of goods or services.

Cafeteria Department Costs

The expenses associated with operating a cafeteria within an organization, including food supplies, labor, and equipment.

Reciprocal Services Method

An approach used in cost accounting to allocate costs between departments that provide services to each other.