In Which Situation Should the Bank Be Asked to Issue

question 32

Multiple Choice

In which situation should the bank be asked to issue a stop-payment order on a check written in payment for a medical supply order?

• A)The check was accidentally written for more than was owed.
• B)The payee has not received payment after a reasonable period has elapsed.
• C)The vendor to whom the check was written refuses to deliver the order.
• D)All of the above are correct.

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Definitions:

Profit Margin

A financial metric that shows the percentage of revenue that exceeds the costs associated with making or buying the goods or services sold.

Net Income

What remains as a company's profit once revenue is adjusted for taxes and expenses.

Return On Assets

A financial metric that measures the profitability of a company relative to its total assets, indicating how efficiently a company uses its assets to generate earnings.

Price-Earnings Ratio

A valuation metric for stocks, calculating the ratio of a company's current share price to its per-share earnings.