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:

Operating Activities

Activities directly related to the business’s primary operations, such as sales, costs, and expenses, impacting the company's cash flow.

Investing Activities

Transactions and events that relate to the acquisition and disposal of long-term assets and other investments not included in cash equivalents, included in a company's cash flow statement.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, part of a company's cash flow statement.

Loss

Refers to the decrease in economic benefits during an accounting period, which typically includes expenses exceeding income.