The Three Parties Involved with a Check Are

question 168

Multiple Choice

The three parties involved with a check are:

• A) The maker, the manager, and the payee.
• B) The writer, the cashier, and the bank.
• C) The bookkeeper, the payee, and the bank.
• D) The signer, the cashier, and the company.
• E) The maker, the payee, and the bank.

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Definitions:

Retail Method

An inventory valuation method used in retail, estimating the ending inventory value by applying a cost-to-retail percentage to the sales at retail.

Cost Ratio

A measure used to evaluate the efficiency and profitability of a company, calculated as the cost of goods sold divided by net sales.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated for cost of goods sold and financial reporting purposes.

Retail Method

An accounting method used to estimate inventory value, calculated by adding the cost of goods purchased to the cost of the opening inventory and then subtracting the cost of goods sold.