George's Wholesaling Agrees to Purchase 1,000 Pounds of Bananas from Chickadee

question 25

Multiple Choice

George's Wholesaling agrees to purchase 1,000 pounds of bananas from Chickadee Exports at 39 cents per pound.George's does not have the money for the bananas now,but promises to pay in two months.Chickadee Exports wants George's business but needs the money now.Chickadee (as drawer) prepares an instrument ordering George's (as drawee) to pay $390 to Primary Bank (the payee) .This is an example of 

• A)a check.
• B)a trade acceptance.
• C)a promissory note.
• D)an outstanding claim.

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Definitions:

Balance

The amount of money currently in an account or owing on a debt, or the practice of equating debits and credits in bookkeeping.

Recovered

The process of regaining possession or control of something lost or stolen, or the return to a normal state of health, mind, or strength.

Liability

Legal responsibility for one's actions or omissions, including the obligation to make restitution.

Dissociated Partner

A term used in business partnerships to refer to a member who has ceased their association with the partnership, affecting their rights and responsibilities towards the partnership.