If a Drawee Bank Certifies a Check, Who Among the Following

question 40

Multiple Choice

If a drawee bank certifies a check, who among the following is discharged of their liability on the check?

• A) The drawer only
• B) The drawee bank and persons who previously indorsed the check
• C) The drawee bank
• D) The drawer and the persons who previously indorsed the check

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Definitions:

CPA

Stands for Certified Public Accountant, a designation given to accounting professionals who have passed a licensing examination and met other state requirements.

Capital

Refers to financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment.

Existing Loan

Refers to a loan that is currently active or outstanding, already agreed upon, and under the process of repayment.

Personal Liability

the legal responsibility of an individual to satisfy debts or obligations incurred, using personal assets if necessary.