A Certificate of Deposit Is a Written Promise by the Maker

question 45

True/False

A certificate of deposit is a written promise by the maker to pay money to the order of another party, the payee.

---

Definitions:

Unlimited Joint Liability

A legal obligation among partners that holds each personally responsible for the total debts of a partnership without limits.

Capital Accounts

Financial records that show the ownership equity in a company, including initial capital contributions, retained earnings, and withdrawals by owners.

Outstanding Liabilities

Financial obligations that a company or individual has not yet settled.

Liquidated Assets

Assets that have been converted into cash or cash equivalents by selling them.