If a Business Deposits a Customer's Cheque and Later Learns

question 173

Multiple Choice

If a business deposits a customer's cheque and later learns that it is an insufficient funds cheque, the

• A) bank will try to collect the amount.
• B) general ledger balance will be less than the bank balance.
• C) business will receive a credit memorandum from the bank.
• D) business will receive a debit memorandum from the bank.

Recognize and prepare noncash investing and financing activities.

Determine the impact of various transactions on cash flows from financing and investing activities.

Utilize financial information to calculate cash flow ratios and evaluate company performance.

Prepare a complete statement of cash flows for a given period using the indirect method.

---

Definitions:

Managerial Accounting Reports

Financial documents that provide detailed financial and operational information tailored to the needs of a company's management for decision making.

Relevance

The quality of information that makes it significant and useful for decision-making purposes.

Chief Management Accountant

A senior-level executive responsible for overseeing a company's management accounting, providing financial insights and strategies for decision-making.

Controller

A senior financial officer in a company responsible for overseeing accounting and financial reporting.