Notice of Dishonor of an Instrument Must Be Given

question 51

Multiple Choice

Notice of dishonor of an instrument must be given:

• A) by a bank before midnight of the third banking day following the banking day on which it receives notice of dishonor.
• B) by a bank before midnight on the next banking day following the banking day on which it receives notice of dishonor.
• C) by a nonbank, with respect to an instrument taken for collection, within three business days following the day on which it received notice.
• D) in all situations within seven calendar days following the day on which dishonor occurred.

---

Definitions:

Straight-Line Method

A depreciation technique that allocates an equal portion of an asset's cost to each year of its useful life.

Measurement Differences

Discrepancies that arise when comparing or converting financial information due to differing methodologies, assumptions, or standards.

IFRS

A collection of accounting norms established by the International Accounting Standards Board (IASB) known as International Financial Reporting Standards, which direct the global preparation of financial statements.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a standard framework of accounting rules for financial reporting.