A Check Received After Banking Hours Is Considered Constructively Received

question 25

True/False

A check received after banking hours is considered constructively received by the payee even though the check cannot be converted to cash.

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Definitions:

Net Cash Flow Impact

The effect on the total cash inflows and outflows for a business, considering all sources of revenue and expenses over a specific period.

Additional Working Capital

Extra funds a company needs to support its normal business operations and accommodate growth.

Full Recovery

The process of recouping all costs incurred during production, often through sales revenue.

Net Present Value

A financial metric showing the value of all future cash flows related to an investment discounted back to the present time.