Derby Stables Writes a Check to Extendo Credit,Inc

question 14

Multiple Choice

Derby Stables writes a check to Extendo Credit,Inc.,that is drawn on Derby's account at Farm & Ranch Bank.If the bank does not accept the check,liability for its amount is on

• A)Derby.
• B)Extendo.
• C)Farm & Ranch.
• D)the holder of the check.

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Definitions:

Capital Budget

The planning process used by a company to determine whether its long-term investments or projects are worth pursuing.

Dividend Per Share

The sum of declared dividends for every share of common stock issued, divided by the number of outstanding shares.

Outstanding Shares

The total shares of stock that are currently owned by shareholders, including restricted shares owned by company insiders.

Profitable Projects

Initiatives or plans that are expected to generate earnings exceeding their costs.