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.

---

Definitions:

Equivalent Replacement

The act or process of replacing an asset with another that performs the same function or yields the same output.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Overdue

Refers to a payment or obligation that has not been met by its specified due date.

Invoice

A document issued by a seller to a buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided.