An Instrument That Orders the Drawee to Pay a Certain

question 6

True/False

An instrument that orders the drawee to pay a certain sum of money, usually to a third-party payee, is a draft .

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Definitions:

Financial Statements

Are documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

General Ledger

The master set of accounts that summarize all transactions occurring across a company.

Adjusting Entry

An adjusting entry is a journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Salaries and Wages Expense

The total amount recorded by a company for the cost of salaries and wages paid to employees.