Honesty in Fact Means Good Faith in Relation to Transactions

question 62

Multiple Choice

Honesty in fact means good faith in relation to transactions between parties ________

• A) who are not merchants.
• B) who are merchants.
• C) who are third party vendors.
• D) buyers and sellers.
• E) lessors and lessees

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Definitions:

Note Receivable

A written promise for the amounts to be received by a party, often including interest, by another party.

Adjusted Cash Balance

The cash amount shown on a company's financial statements after adjustments for checks outstanding, deposits in transit, and other necessary adjustments.

NSF Check

A check that cannot be processed because the writer's account does not have sufficient funds, commonly known as a bounced check.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement to ensure accuracy.