A Substitute Check

question 40

Multiple Choice

A substitute check:

• A)is basically a copy of the original check that shows both the front and back of the original check.
• B)is not suitable for automated processing in the same manner as the original but is used by the banks for storage of the information on an original check after processing.
• C)bears a legend stating that it is only a copy of a check and that it is not to be used in the same way as the original.
• D)All of these.

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Definitions:

Stockholders' Equity

Stockholders' equity represents the residual interest in the assets of a corporation, after deducting liabilities.

Par Common Stock

The nominal or face value assigned to common stock shares, as stated in the corporate charter.

Total Impact

The overall effect or influence of something, often used to assess the comprehensive outcome of a decision, action, or event.

Cumulative Preferred

A type of preferred stock where dividends accumulate if not paid in a given period and must be paid out before any dividends can be distributed to common stockholders.