Bogart Presents a Sight Draft to Commerce Bank for Payment

question 22

Multiple Choice

Bogart presents a sight draft to Commerce Bank for payment. A bank employee writes accepted across the face of the instrument, and adds the date and the bank's signature. The draft is

• A)acknowledged as received, but not payable without further verification.
• B)accepted and will be payable by the close of the next business day.
• C)payable ninety days after sight.
• D)payable immediately or within a stated time after sight.

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Definitions:

Payroll Tax Expense

Total taxes, both employer and employee portions, associated with wages and salaries, including federal, state, and other payroll taxes.

Calendar Quarter

A three-month, 13-week time period. Four calendar quarters occur during a calendar year that runs from January 1 through December 31. The first quarter is January through March, the second is April through June, the third is July through September, and the fourth is October through December.

FICA-OASDI

Refers to the Federal Insurance Contributions Act's component for Old-Age, Survivors, and Disability Insurance, a payroll tax funding Social Security.

Overtime

Additional hours worked beyond the standard work schedule, often compensated at a higher rate.