Albert Buys a Surround Sound System from His Neighbor George

question 2

Multiple Choice

Albert buys a surround sound system from his neighbor George at George's garage sale. Albert writes George a check for $250 for the sound system. George is

• A) the certifier.
• B) the drawee.
• C) the drawer.
• D) the payee.

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Definitions:

Cash Dividend

A distribution of profits by a corporation to its shareholders in the form of cash.

Cash

Money in the form of coins or banknotes, especially that held by a person or business.

Stock Investments

Financial assets referring to shares purchased in other companies intended for income generation or capital gains.

Cost Method

An investment accounting approach where the investment is recorded at cost and adjusted only for dividends received, not market value changes.