A Restrictive Endorsement on a Check

question 114

Multiple Choice

A restrictive endorsement on a check:

• A)can be further endorsed by someone else.
• B)is the safest endorsement for businesses.
• C)permits the bank to use its best judgment.
• D)None of these answers are correct.

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Definitions:

Financial Data

Quantitative information about a company's financial position, performance, and cash flow, which is used for analysis and decision-making.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets (cash, marketable securities, and accounts receivable).

Financial Data

Quantitative information about a company's financial position, performance, and cash flow, used for analysis and decision-making.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with its most liquid assets without having to sell inventory.