Which Is the Correct Term for a Promise Made by a Bank

question 90

Multiple Choice

Which is the correct term for a promise made by a bank to pay a payee a certain amount of money at a future time?

• A)A certificate of deposit
• B)A check
• C)A novation
• D)A note
• E)A draft

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Definitions:

Cost of Goods Sold

The direct expenses tied to the production of goods sold by a company, including material, labor, and overhead costs, directly affecting gross profit.

Accounts Payable

A liability representing an amount owed by an entity to its creditors/suppliers for goods and services purchased on credit.

Accumulated Other Comprehensive Income

A section of equity that captures unrealized gains and losses affecting shareholders' equity not included in net income.

Financing Activities

Transactions and events where a company either raises funds through borrowing or repaying debts, or issues and repurchases its own shares.