Which of the Following Statements About Bank Bills Is Incorrect

question 55

Multiple Choice

Which of the following statements about bank bills is incorrect?

• A) The drawer is the party that issues the bill.
• B) The acceptor is the party that has primary liability to repay the face value of the bill.
• C) The payee is the party that receives the borrowed funds when the bill is initially issued.
• D) The discounter is the party that repays the acceptor at maturity.

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Definitions:

Check Register

A record book or electronic document used to track checks written, deposits made, and current balances in a checking account.

Outstanding Check

A check that has been written and issued but not yet cashed or cleared by the bank.

Service Charge

A charge imposed to cover expenses associated with the main product or service being acquired.

Adjusted Cash Balance

The cash amount shown on a company's books after adjustments have been made for checks written or deposits in transit.