Compared to an Electronic Payments System,a Payments System Based on Checks

question 35

Multiple Choice

Compared to an electronic payments system,a payments system based on checks has the major drawback that

• A)checks are less costly to process.
• B)checks take longer to process,meaning that it may take several days before the depositor can get her cash.
• C)fraud may be more difficult to commit when paper receipts are eliminated.
• D)legal liability is more clearly defined.

---

Definitions:

Accounts Receivables

Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Liabilities of a company or an organization consisting of money owed to suppliers or creditors for goods and services received that are not yet paid for.

Inventory

Goods or materials that a business holds for the purpose of resale or production.

Cash

Money in the form of coins or notes, as opposed to checks, credit, or other forms of payment.