Outstanding Checks Refer to Checks That Have Been

question 24

Multiple Choice

Outstanding checks refer to checks that have been:

• A)Written,recorded,sent to payees,and received and paid by the bank.
• B)Written and not yet recorded in the company books.
• C)Held as blank checks.
• D)Written,recorded on the company books,sent to the payee,but not yet paid by the bank.
• E)Issued by the bank.

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less.

Liquid Investment Assets

Liquid investment assets are financial assets that can be quickly converted into cash with minimal loss of value, such as stocks and bonds.

Market Value

The current market rate for acquiring or selling an asset or service openly.

Signature Card

A document signed by an account holder that allows a bank to verify the account holder's signature on checks and other documents.