All of the Following Statements Is Incorrect Concerning Stale Checks

question 29

Multiple Choice

All of the following statements is incorrect concerning stale checks except: ______.

• A) A check is stale when dated more than six (6) months before presentation to the bank.
• B) Banks are required to pay stale checks unless a stop payment order has been issued.
• C) Banks can pay in good faith after three (3) months.
• D) Stale checks do not have to be verified with the bank's customer.

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Definitions:

Break-even Analysis

A calculation to determine the sales volume at which total revenues equal total costs, indicating no profit or loss.

Contribution Margin Ratios

The ratio of contribution margin (sales minus variable costs) to sales revenue, indicating the percentage of sales revenue that exceeds variable costs.

Break-even Point

The production level at which total revenues equal total expenses, resulting in no profit or loss.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, reflecting a company’s fixed versus variable costs structure.