A Holder of a Check or Draft Who Wants to Get

question 18

True/False

A holder of a check or draft who wants to get payment on it should first present the check or draft to the drawer.

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Definitions:

Held

Usually refers to assets or investments retained over a period, not sold or traded.

Capital Surplus

The amount by which a company's total capital exceeds the par value of its issued share capital.

Paid-in Capital

Funds raised by a company through the sale of common or preferred stock.

Preferred Stock

A type of stock that provides a fixed dividend before any dividends are paid to common stockholders and typically has no voting rights.