Avril Receives a Payroll Check from Business Solutions, Inc

question 1

Multiple Choice

Avril receives a payroll check from Business Solutions, Inc., and indorses it by signing her name on the back of the check. This is​

• A) ​a blank indorsement.
• B) ​a qualified indorsement.
• C) ​a restrictive indorsement.
• D) ​a special indorsement.

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Definitions:

Accounts Receivable

Represents money owed to a company by its customers for goods or services delivered but not yet paid for.

Indirect Method

A way of calculating cash flows for operational activities by starting with net income and adjusting for non-cash transactions.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from revenues.

Direct Method

A method of preparing the cash flow statement where actual cash flow information from the company’s operations segment is used directly.