A Depositary Bank Is Any Bank Handling an Item for Payment

question 22

True/False

A depositary bank is any bank handling an item for payment.

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Definitions:

Day-to-Day Operations

The routine activities required for the running of a business on a regular, daily basis, involving processes, resources, and staff management.

Indirect Method

A method used in the preparation of cash flow statements which adjusts net income for transactions that affect reported net income but did not involve cash.

Accounts Receivable

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

Accounts Payable

Liabilities or money owed to suppliers or creditors for goods and services received but not yet paid for.