Which of the Following Is Not True Concerning the Use

question 233

Multiple Choice

Which of the following is not true concerning the use of a bank?

• A) In order to take advantage of the many features of a bank that contribute to strong internal control over cash, a business must have a bank account. Each bank may require specific documentation in order to open an account.
• B) Although banks offer many types of accounts, most businesses start by opening a savings account.
• C) The person or company opening a checking account is referred to as the depositor.
• D) A bank requires the depositor to complete a signature card, which the bank uses when needed to verify the validity of a check.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the business's operating cycle, whichever is longer.