Lewis Makes a Note Payable to MaxiFinance Corporation

question 11

Multiple Choice

Lewis makes a note payable to MaxiFinance Corporation. MaxiFinance indorses the back of the note and negotiates it to Hedge Investments Inc. Primarily liable on the note is​

• A) ​none of the choices.
• B) ​MaxiFinance.
• C) ​Hedge.
• D) ​Lewis.

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Definitions:

General Journal

A primary accounting record used to record all types of transactions not specifically assigned to another journal.

Sales Discount

A reduction given by a seller for prompt payment of a credit sale.

Cash Receipts Journal

A specialized accounting journal used to keep track of all cash inflows or receipts from various sources.

Entry

A record in an account that documents a financial transaction in bookkeeping.