Fact Pattern 25-1 Erin Draws a Check Payable to "Foodland" to Buy Groceries

question 52

Multiple Choice

Fact Pattern 25-1
Erin draws a check payable to "Foodland" to buy groceries.
-Refer to Fact Pattern 25-1. With respect to Erin's check, Foodland is

• A) ​the drawee.
• B) ​the drawer.
• C) ​the maker.
• D) ​the payee.

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Definitions:

Revenue Accounts

Accounts in the general ledger that track the income generated by a company from its normal business operations.

Gain On Sale

The profit realized when a capital asset is sold for a higher price than its purchase price.

Property And Equipment

Tangible assets owned by a business for use in the production or supply of goods and services or for rental to others.

Cash For Interest

A term that refers to the amount of cash a company pays for the interest on its outstanding debts.