When a Payment Is Tendered by Check,_____

question 20

Multiple Choice

When a payment is tendered by check,_____.

• A) the buyer does not have the right to retain the goods and must give them back to the seller
• B) the payment is not conditional but can be considered as final or complete
• C) the buyer has the right to retain the goods if the bank refuses to pay the check
• D) the duty to pay for the goods is satisfied by the buyer if the bank pays the check

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Definitions:

Periodic Weighted

A method of inventory valuation that assigns a weighted average cost to items, based on the cost of goods available for sale during a period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.

Average Method

An inventory costing method that prices items based on the average cost of all similar items in inventory.

Cost of Goods Sold

The direct costs tied to the production of products sold by a company, including material and labor expenses.