Fact Pattern 25-1B (Questions B5-B6 Apply)

question 15

Multiple Choice

Fact Pattern 25-1B (Questions B5-B6 apply)
Thalia signs an instrument unconditionally promising to pay to "Union Bank" $7500 with interest in installments with the final payment due June 1, 2017.
-Refer to Fact Pattern 25-1B. With respect to this instrument, Union Bank is

• A) the drawee.
• B) the indorser.
• C) the maker.
• D) the payee.

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Definitions:

Financial Position

A snapshot of a company’s assets, liabilities, and equity at a specific point in time, indicating its economic resources and obligations.

Cost Of Goods

The specific expenses linked to the manufacture of goods a company sells, which involves materials and labor.

Inventory Cost

The total cost associated with holding and acquiring inventory, including purchase prices, delivery charges, and handling fees.

Average Cost

A method of inventory valuation where the cost of goods sold and ending inventory is determined by taking the weighted average of the cost of all items available for sale during the period.