Notice of Dishonor of an Instrument Must Be Given

question 55

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) in all situations within seven calendar days following the day on which dishonor occurred.
• 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) by a bank before midnight on the next banking day following the banking day on which it receives notice of dishonor.

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Definitions:

Overhead Assigned

The process of allocating indirect costs to specific cost objects, such as products or services, based on predetermined rates or bases.

Allocation Base

A criterion or standard used to distribute costs among multiple cost objects in a fair and systematic manner.

Plantwide Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, applied uniformly to all cost objects irrespective of the department in which they were produced.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process.