Which of the Following Would a Business Law Professor Most

question 52

Multiple Choice

Which of the following would a business law professor most likely identify as creating the legal uncertainty surrounding electronic banking?

• A) Potential for forgery and fraud are changed and expanded.
• B) Existing legislation is irrelevant in a paperless environment.
• C) The bank is responsible for electronic failures.
• D) It increases potential for transmission failures and system crashes.

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Definitions:

Actual Bad Debts

Debts that have been specifically identified as uncollectible, following efforts to collect and evidence that repayment is unlikely.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered or used but not yet paid for.

Sales

The total revenue earned from the sale of goods or services by a company during a specified period.

Net Price Method

An accounting method that records purchases at the net cost, after deducting any purchase discounts, rather than recording them at the gross cost.