Which of the Following Statements Is True of Certified Checks

question 3

Multiple Choice

Which of the following statements is true of certified checks?

• A) Banks are obligated to certify checks that are for amounts greater than $10,000.
• B) Certified checks are payable at any time from the date they are issued.
• C) A drawer can stop payment on a certified check if it is indorsed.
• D) Banks can charge a fraction of the check value as a fee for certifying it.

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Definitions:

Fixed Operating Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced.

Straight-Line Depreciation

An approach to apportion the cost of a tangible asset throughout its operational life in equal yearly sums.

Net Present Value

A financial calculation used to determine the value of a series of future cash flows by discounting them back to their value in today's dollars.