When Processing a Check,Savings & Trust Bank Encodes Information,such as the Amount

question 62

Multiple Choice

When processing a check,Savings & Trust Bank encodes information,such as the amount of the check,on the item. Savings & Trustthereby warrants to any subsequent bank or payor that

• A)the item has been returned to the drawer.
• B)none of the choices.
• C)the check has been processed manually.
• D)the encoded information is correct.

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Definitions:

Ledger

A ledger is a comprehensive collection of accounts where financial transactions are categorized and recorded in a double-entry bookkeeping system.

Journal Entries

Records of financial transactions in the accounting system, documenting the details of transactions and their impact on the accounts.

Debits

A transaction recorded in accounts that causes assets to grow or liabilities to shrink on a firm's balance sheet.

Credits

Accounting entries that increase liability or equity accounts, or decrease asset or expense accounts.