Selena Johnson Has a Checking Account at the Union Bank

question 7

Multiple Choice

Selena Johnson has a checking account at the Union Bank of New York.She goes to Home Depot and agrees to buy a room heater priced at $200.She writes a check to pay for it.Home Depot is the:

• A)payer.
• B)drawer.
• C)payee.
• D)drawee.

---

Definitions:

Capital Budgeting

The strategy of organizing and overseeing a firm's extended investments in significant projects or assets.

Cash Flow

The aggregate measure of capital movement into and from a business, significantly affecting its solvency.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of maximization of shareholder wealth.

Income Tax Expense

The cost incurred by businesses and individuals due to earnings, computed based on tax rates and laws.