[Cash Availability] Arturo, Who Owns a Vineyard in Northern California

question 51

Multiple Choice

[Cash Availability] Arturo, who owns a vineyard in Northern California, deposits two checks in his local bank on Monday. One check is from Simon, who lives in the area, and the other is from Zina, who lives in Atlanta. Arturo needs to write a check to a supplier from his local account.
-Arturo's bank tells him they have placed an eight-day hold on the funds. Arturo tells them they cannot do so. Is he correct?

• A) Yes, because they must make the funds available on the fifth business day following the day of deposit of the non-local check.
• B) Yes, because they must make the funds available on the third business day following the day of deposit of the non-local check.
• C) No, if one of the checks was over $5,000.
• D) No, if one of the checks was over $10,000.
• E) Yes, because a depositary bank must release funds on the fifth business day after transfer to a Federal Reserve Bank.

Determine the impact of closing entries on the Income Summary account.

Understand the preparation of final statements from the worksheet post adjustments and closings.

Recognize the sequence of steps in the accounting cycle.

Understand the purpose and preparation process of a post-closing trial balance.

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Definitions:

French and Indian War

A conflict between France and Great Britain from 1754 to 1763 in North America, part of a larger struggle called the Seven Years' War, involving various Native American tribes.

Deteriorate

To become progressively worse over time.

Colonists

Individuals who settle in a new country or area, often for the purpose of establishing a colony that maintains ties with the parent country.

British

Relating to Great Britain, its people, culture, and history, or pertaining to the United Kingdom as a whole.