Which One of the Following Statements Best Describes the Term

question 158

Multiple Choice

Which one of the following statements best describes the term "outstanding check?"

• A) A check written by the company and presented to the bank for payment.
• B) A check written by the company but not yet presented to the bank for payment.
• C) A check written by a customer that has been presented to the bank for payment.
• D) A check written by a customer that has not yet been presented to the bank for payment.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in net profit or loss.

Current Asset

Short-term assets such as cash, inventory, and receivables that are expected to be liquidated or turned into cash within a short period, typically within a year.

Property, Plant, And Equipment

Tangible assets used in a company's operations that have a useful life of more than one year.

Current Liability

Short-term financial obligations that are due within one year or within the normal operating cycle.