To Obtain a Business License, Bess Writes a Check to a Certain

question 21

Multiple Choice

To obtain a business license, Bess writes a check to a certain state agency. Bess is

• A) the drawee.
• B) the drawer.
• C) the indorser.
• D) the payee.

---

Definitions:

Gross Profit Method

An inventory estimation technique that calculates cost of goods sold and ending inventory based on the gross profit margin.

Capital Budgeting

The process of planning and evaluating investments in long-term assets.

Payback Method

A capital budgeting technique that calculates the time needed to recoup the investment cost through net cash flows.

Cost of Capital

The minimum profit rate a company needs to achieve on its investment ventures to keep its market value stable and draw in capital.