Carol Buys Some Items at the Drugstore and Writes a Check

question 43

Multiple Choice

Carol buys some items at the drugstore and writes a check to the store on her account at First Bank.Who is the drawee?

• A) First Bank.
• B) Carol.
• C) The drugstore.
• D) There is none.

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Definitions:

Cash Flow

The cumulative sum of funds moving in and out of a company, particularly influencing its liquid assets.

Operating Activities

Activities related directly to the business's primary operations, such as selling products or services, and reflected in its cash flow statement.

Accounts Receivable

Financial obligations of customers towards a company for received goods or services yet to be paid.

Debit Balance

The amount that remains in a financial account when the total debits exceed the total credits, often indicative of expenses or assets.