Which of the Following Statements Concerning Drafts Is (Are) Correct

question 44

Multiple Choice

Which of the following statements concerning drafts is (are) correct?

• A)Drafts require the firm to keep larger balances in its disbursement account.
• B)When a draft is transmitted to the firm's bank for collection, the bank must present the draft to the firm for acceptance before payment is made.
• C)Both a and b are correct.
• D)Neither a nor b is correct.

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Definitions:

Feedback Value

The importance or usefulness of feedback received for improving performance or decision-making processes.

Stockholders' Equity

The remaining value in a company's assets after liabilities are subtracted, commonly known as owner's equity or shareholder's equity.

Assets

Resources owned or controlled by a business or an individual, which are expected to produce economic value or benefit in the future.

Additional Shares

Shares issued by a company in addition to its existing shares, often to raise extra capital.