If a Drawer and a Payee or Holder Have Accounts

question 26

Multiple Choice

If a drawer and a payee or holder have accounts at different banks, the payer bank and depository bank are not the same bank. In this case, the check is called a(n) ________.

• A) non-negotiable instrument
• B) presentment warranty
• C) stale check
• D) "on them" item

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Definitions:

Operative Costs

Expenses associated with the day-to-day operations of a business, including salaries, rent, and utilities.

Franchise

A type of license that a party (franchisee) acquires to allow them to have access to a business's (franchisor) proprietary knowledge, processes, and trademarks to sell a product or provide a service under the business's name.

Cost Price Approach

A pricing method that determines the selling price of a product by adding a profit margin to the total cost of production.

Transfer Pricing

The pricing of goods, services, and intangibles transferred within divisions of a company or across affiliated entities to reflect market conditions.