In a check, who orders the bank to pay a certain amount?

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Study for the Accounting CBE Exam. Gain insights with flashcards and multiple-choice questions, each paired with detailed explanations. Prepare for your accounting certification!

Multiple Choice

In a check, who orders the bank to pay a certain amount?

Explanation:
A check works as an instruction from the writer to their bank. The person who signs and writes the check tells the bank to pay a specific amount to the named payee. The bank, acting on that instruction, transfers the funds if available. Endorsement is about signing to transfer or claim rights to the check, not about issuing the payment itself. The recipient or payee is the one who ends up receiving the funds, but they don’t order the bank to pay—they’re the beneficiary. The bank that pays is the drawee executing the instruction. So the correct idea is that the person who orders the bank to pay the amount is the writer of the check.

A check works as an instruction from the writer to their bank. The person who signs and writes the check tells the bank to pay a specific amount to the named payee. The bank, acting on that instruction, transfers the funds if available. Endorsement is about signing to transfer or claim rights to the check, not about issuing the payment itself. The recipient or payee is the one who ends up receiving the funds, but they don’t order the bank to pay—they’re the beneficiary. The bank that pays is the drawee executing the instruction. So the correct idea is that the person who orders the bank to pay the amount is the writer of the check.

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