The Checks That Have Been Paid by the Bank on Behalf

question 11

Multiple Choice

The checks that have been paid by the bank on behalf of the depositor, which are included with the bank statement, are called:

• A)outstanding checks.
• B)NSF checks.
• C)checks in transit.
• D)canceled checks.

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Definitions:

Operating Loss

A situation where a company's operating expenses exceed its revenue, indicating that it is not making a profit from its core business activities.

Variable Costs

Costs that vary directly with the level of production or sales volume.

Fixed Costs

Fixed costs include payment for rent, employee salaries, and insurance expenses, which do not vary with production or sales volume.

Operating Income

A measure of a company's profitability from its regular business operations, excluding income and expenses from non-operating activities.