Adam Writes a Cheque in Favour of Bruce on a Cheque

question 10

Multiple Choice

Adam writes a cheque in favour of Bruce on a cheque form issued by CitiBank. In this situation who is Citibank?

• A) The drawee.
• B) The drawer.
• C) The payee.
• D) None of the above.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, remaining constant regardless of business activity.

Sales Revenue

The total amount earned from the sale of goods or services before any costs or expenses are deducted.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and can be easily quantified and allocated to that product.

Break-even Point

The production level at which total revenues equal total expenses, and there is neither profit nor loss.