An Instrument Is Payable to Order If It Is Payable

question 37

Multiple Choice

An instrument is payable to order if it is payable:

• A) to the order of an identified person.
• B) to an identified person or order.
• C) Both of these.
• D) Neither of these.

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Definitions:

Subsidiary Ledger

A detailed ledger that contains the supporting documents for accounts in the general ledger, used to track specific details, such as customer accounts.

Received Cash

The inflow of cash to a business, recorded on the financial statements when cash is received from customers, loans, or other sources.

Accounts Payable Subsidiary Ledger

A detailed ledger that contains all individual transactions related to accounts payable.

Payments To Creditors

Money paid out by a business to settle debts owed to suppliers or lenders for goods, services, or loans.