Which of the Following Is True Regarding a Drawee's Liability

question 21

Multiple Choice

Which of the following is true regarding a drawee's liability on a check or a draft?

• A)The drawee is primarily liable in all cases.
• B)The drawee is secondarily liable because the holder must first proceed against the drawer.
• C)The drawee is primarily liable if it accepts (certifies)a check.
• D)The drawee is secondarily liable only in doubtful cases.

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Definitions:

Assets

Resources owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

Internal Auditor

A professional within an organization responsible for evaluating the effectiveness of its risk management, control, and governance processes.

Financial Practices

The policies, procedures, and strategies managing financial operations and planning in a business or organization.

Regulations

Rules or directives made and maintained by an authority to regulate behavior or processes.