Alice Writes a Check "Pay to the Order of Caleb

question 86

Essay

Alice writes a check "Pay to the order of Caleb." The check is drawn on the Berkley's Bank.Who are the drawer,the drawee,and the payee on this instrument? Why is this check called order paper?

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Definitions:

Current Portion

The current portion usually refers to the segment of long-term debt or loan that is due to be paid within the next fiscal year.

Long-Term Debt

Loans and financial obligations lasting over one year that appear on a company's balance sheet.

Current Liability

A current liability is a financial obligation that is due to be settled within one year or within the normal operating cycle of the business, whichever is longer.

FICA Taxes

Taxes mandated by the Federal Insurance Contributions Act, which fund Social Security and Medicare, collected from both employers and employees.