Fact Pattern 19-2 ​LNG Corporation and Midstates Utility Company Enter a Contract for a Contract

question 3

Multiple Choice

Fact Pattern 19-2
​LNG Corporation and Midstates Utility Company enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Midstates Utility to pay $50,000 to LNG's order in sixty days. Midstates Utility signs and dates the draft.
-Refer to Fact Pattern 19-2. On this instrument, LNG is

• A)the banker.
• B)the drawer.
• C)the maker.
• D)the trader.

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Definitions:

Total Amount

The sum total of all quantities or values, usually referring to the final sum on invoices, bills, or financial statements.

Cost Reconciliation Report

A report that reconciles estimated or budgeted costs with actual costs, commonly used in project management and job costing.

Total Cost

The complete cost of producing or acquiring goods or services, including fixed and variable costs.

Department

A distinct part of an organization with a specific function or group of related functions.