The person to whom any negotiable instrument is made payable is called the drawee.

Jordan Company purchased ten-year, 10% bonds that pay interest semiannually. The bonds are sold to yield 8%. One step in calculating the issue price of the bonds is to multiply the principal by the table value for

a. 10 periods and 10% from the present value of 1 table. b. 10 periods and 8% from the present value of 1 table. c. 20 periods and 5% from the present value of 1 table. d. 20 periods and 4% from the present value of 1 table.

Company A’s inventory turnover is 5 and Company B’s is 3. Which of the following conclusions can be drawn?

a. Company A has a higher risk of stock-outs than Company B. b. Company A has a lower risk of lost sales than Company B. c. Company A converts its inventory to profits slower than Company B. d. Company A has a higher risk of product theft than Company B.