When the Drawee of an Unaccepted Draft or Check Pays

question 22

True/False

When the drawee of an unaccepted draft or check pays to a holder the amount due in full, all parties to the instrument are discharged.

---

Definitions:

Earnings Per Share

A measure of a company's profitability that is calculated by dividing its net earnings available to common shareholders by the average outstanding shares.

Common Stock

Represents equity ownership in a corporation, providing voting rights and entitling the holder to a share of the company's success through dividends and/or capital appreciation.

Fixed Asset Turnover

A financial ratio that measures a company's effectiveness in generating sales from its fixed assets.

Net Income

The amount of a company’s profit after all expenses, taxes, and costs have been subtracted from total revenue.