Jon Writes a Check to LocoMotion,Inc

question 63

Multiple Choice

Jon writes a check to LocoMotion,Inc.,as payment for a golf cart but soon discov-ers the cart is broken.He goes to Fairway Bank,the drawee,and orally author-izes Lolly,a bank officer,to stop payment on the check.This order is valid for

• A)fourteen days.
• B)fourteen months.
• C)fourteen attempts to cash it.
• D)fourteen subsequent "on-us" items.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, due to past transactions or events.

Revenue

The complete financial intake a company secures from transactions involving goods or services within a certain interval.

Expenses

Outflows or other using up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations.

Held-to-maturity Securities

Financial assets purchased with the intention and ability to hold them until a specified maturity date.