A Promise or Order Is "Payable on Demand" If It

question 48

Multiple Choice

A promise or order is "payable on demand" if it states that it is payable:

• A) only to the bearer.
• B) on a particular date.
• C) on the fulfillment of a condition.
• D) at the will of the holder of the instrument.

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Definitions:

Finished Goods

Products that have completed the manufacturing process and are ready for sale.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Machine-hours

A measure of the amount of time machines are operated, used in allocating overhead costs.

Direct Labour Cost

The total expense of wages paid to workers directly involved in the manufacturing process or production of goods or services.