What Is the Effect of 'Crossing' a Cheque with Two

question 24

Multiple Choice

What is the effect of 'crossing' a cheque with two parallel lines?

• A)The cheque is revoked.
• B)The cheque becomes non-transferable.
• C)The cheque must be paid into a bank account.
• D)The cheque becomes not negotiable.

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Definitions:

DSO

Days Sales Outstanding (DSO) represents the average duration in days for a business to receive payment following a sale.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Credit Sales

Transactions where the goods or services are provided to a customer with an agreement that payment will be made at a later date.

EOQ

Economic Order Quantity is the ideal quantity of inventory a company should purchase to minimize the total costs of ordering and holding.