Future Business Leaders of America (FBLA) Accounting Practice Test

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Prepare for the FBLA Accounting Test with practice quizzes and comprehensive questions. Each question is designed to help deepen your understanding and enhance your readiness for the exam. Are you ready to excel?

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What is a drawee?

The person signing the check
The bank on which the check is written
The check writer's accountant
The business receiving the check

The correct answer is: The bank on which the check is written

A drawee is specifically the bank or financial institution that is responsible for paying out the amount specified on a check upon presentation. When a check is written, it instructs the drawee to withdraw funds from the account of the check writer, who is known as the drawer. This relationship establishes the drawee's obligation to honor the check, provided that there are sufficient funds in the drawer's account. In this context, the drawee acts as an intermediary between the check writer and the recipient of the check, ensuring that the funds are transferred appropriately. Understanding this role is critical in the processes of banking and accounting, as it underlines the importance of reliable banking institutions in facilitating financial transactions.