Miguel Opened a Chequing Account at the Bank of Guelph

question 66

True/False

Miguel opened a chequing account at the Bank of Guelph.As part of that transaction, Miguel authorized the bank to credit his account every time that he wrote a cheque on it.

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Definitions:

Premium

An amount paid in excess of the normal or nominal value, often relating to the additional cost over the face value of securities or insurance charges beyond standard rates.

Bonds Payable

Long-term liabilities representing borrowed funds that a company is obliged to pay back with interest at specified times.

Valuation Account

An account used to adjust the carrying value of an asset or liability, such as an allowance for doubtful accounts or accumulated depreciation.