Ruiz Writes a Check Drawn on His Account at Security

question 12

Multiple Choice

Ruiz writes a check drawn on his account at Security Bank and payable to the order of Twyla. The bank does not pay the check. Ruiz is

• A)absolved of liability on the check.
• B)liable to the payee for the amount of the check.
• C)liable to the bank for the amount of the check.
• D)entitled to payment of the amount of the check from the payee.

---

Definitions:

Inventory Cost Methods

Inventory cost methods are accounting strategies for valuing inventory, such as FIFO (First In, First Out), LIFO (Last In, First Out), and average cost method.

Inventory Turnover Ratio

A measure of how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.

Average Cost Formula

A method used in accounting to calculate the cost of sold goods or services by dividing the total cost of goods available for sale by the total number of items available.

Ending Inventory

The total value of all goods available for sale at the end of an accounting period, used in calculating the cost of goods sold and determining profitability.