MrsDawson Wrote a Check to Kevin for $50 on New

question 12

Multiple Choice

Mrs.Dawson wrote a check to Kevin for $50 on New Year's Day for clearing the snow from her driveway on Christmas Eve.When Kevin tries to cash the check at Mrs.Dawson's bank,however,he is told that the check is stale.Which of the following is the most likely reason for Mrs.Dawson's check being dishonored by the bank?

• A) Mrs. Dawson did not have enough funds in her checking account.
• B) Mrs. Dawson had dated the check for the previous year instead of the current year.
• C) Mrs. Dawson had not identified Kevin as the payee while writing out the check.
• D) Mrs. Dawson had given Kevin a check which was dated more than six months ahead of the date of issue.

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Definitions:

Dividends

A portion of a company's earnings distributed to its shareholders, often expressed as a fixed amount per share.

IFRS

International Financial Reporting Standards, a set of global accounting standards that guide the financial reporting of public companies.

Statement of Cash Flows

A financial documentation that illustrates the effect of changes in balance sheet accounts and profit on cash and cash equivalents, dividing the analysis into categories of operating, investing, and financing activities.

Noncash Investing

Investing activities that do not involve the immediate outflow of cash, such as acquiring assets through finance leases.