A Check Is Finally Paid When ________

question 2

Multiple Choice

A check is finally paid when ________.

• A) the depository bank credits the customer's account with an option to reverse the credit in case of dishonoring of the check
• B) the payer bank fails to dishonor the check within certain statutory time periods
• C) the drawer settles for the check while holding a right to revoke the settlement
• D) the final bank in the collection process tentatively credits the account of the prior transferor

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Definitions:

GASB Concepts Statement No. 1

A document issued by the Governmental Accounting Standards Board outlining objectives and concepts that guide the development of accounting and financial reporting standards for state and local governments.

Primary Users

The main audience or recipients of financial reports, typically considered to be existing and potential investors, lenders, and other creditors.

Capital Projects Fund

A governmental accounting fund used to account for financial resources set aside for the acquisition or development of major capital assets.

Governmental Fund Financial Statements

Financial reports that focus on the sources, uses, and balances of governmental funds and provide insight into fiscal accountability.