Which of the Following Statements Is Not Accurate in Relation

question 1

Multiple Choice

Which of the following statements is not accurate in relation to the words 'account payee' on a cheque?

• A)The words prevent the cheque being transferred to someone else.
• B)The words are not recognised by the Cheques Act 1968 as a valid crossing on a cheque.
• C)A collecting institution that collects a cheque for a customer who is not the specified payee may be liable to the true owner of the cheque.
• D)The words warn a collecting institution that the cheque must be paid into the account of the specified payee.

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Definitions:

Normal Return

The minimum profit needed by investors to justify the capital invested in a business venture, often equated to the opportunity cost.

Total Revenue

Total Revenue is the total amount of money received by a firm from sales of goods or services before any expenses are deducted.

Economic Profit

The contrast between cumulative revenue and cumulative costs, taking into account both clear and veiled expenses.

Economic Costs

The sum of explicit costs (direct payment for resources) and implicit costs (opportunity costs of using resources owned by the firm).