Read the Following Statements with Regard to the Parties Involved

question 77

Multiple Choice

Read the following statements with regard to the parties involved with negotiable instruments and indicate which is False.

• A) The person who signs and issues the cheque is the drawer. The person who is owed the money and receives the cheque is the drawee.
• B) A person who signs a draft is a drawer; the party commanded to pay is the drawee.
• C) An acceptor of a draft will become liable to the payee for the amount of the draft.
• D) The payee of a negotiable instrument can negotiate the instrument to a holder who will be remote in relation to the drawer.
• E) The person who signs a promissory note is the maker of the note and, unlike a cheque, the note will not include a drawee.

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Definitions:

Twin Daughters

Refers to a set of female offspring born during the same pregnancy, sharing a special bond but considered as individual dependents for tax and legal purposes.

Retirement Savings Contributions Credit

A tax credit that encourages low to moderate income taxpayers to make contributions to qualified retirement accounts.

AGI

Adjusted Gross Income is the total income minus specific deductions, used to determine taxable income on an individual's tax return.

Contributed

The act of giving or donating something, often for a cause or in context of capital given to a business or investment.