Presentment Is a Demand Made by or on Behalf of a Person

question 49

Multiple Choice

Presentment is a demand made by or on behalf of a person entitled to enforce the instrument for:

• A) payment by the drawee or other party obligated to pay the instrument.
• B) acceptance by the drawee of a draft.
• C) Both are correct.
• D) None of these are correct.

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Definitions:

Cost Basis

The original value of an asset for tax purposes, usually the purchase price, which is used to determine capital gain or loss upon sale.

Fixed Asset

Long-term tangible assets held for business use and not expected to be converted to cash in the current or upcoming fiscal year.

Long-Lived

Pertaining to assets, it refers to items that are expected to provide economic benefits over a prolonged period, generally exceeding one year.

Normal Operations

The regular, day-to-day activities carried out by a business to generate revenue and profit.