Alpha Company Has an Account at First Bank

question 76

Multiple Choice

Alpha Company has an account at First Bank. Alpha writes a check payable to Beta Company. In this transaction, Alpha Company is the:

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

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Definitions:

Taxable Income

The portion of income that is subject to tax, after accounting for deductions and exemptions.

Taxpayer

An individual or entity that is required by law to pay taxes to a federal, state, or local government.

State Tax

A tax imposed by a state on earned income, business profits, property, sales, etc., that varies from state to state.

Itemized Deduction

Expenses listed separately that can be deducted from adjusted gross income to reduce taxable income, including medical expenses, taxes paid, interest, charitable contributions, and certain job-related expenses.