Every Ethernet interface attached to the network reads in every transmitted frame up to at least the destination address field. If the destination address does not match the interface's own Ethernet address or one of the multicast or broadcast addresses that the interface is programmed to receive, then the interface is free to ignore the rest of the frame.
That is correct however the logic goes a bit beyond that description. Since the broadcast and muticast flags (part of destination address) are the ones trasmitted first, they can be checked very early by the receiver, that then can take the appropriate actions. That was more important in the original Ethernet where harware resoruces were limited, and using a broadcast media all the time.
