On April 6, Ellen Sends a Check Out to a Magazine

question 5

Multiple Choice

On April 6, Ellen sends a check out to a magazine publisher and then discovers she has already paid for the subscription. She calls her bank and orders that the bank not make payment. That order will be good until:

• A) April 13.
• B) October 6.
• C) April 13 if confirmed in writing.
• D) October 6 if confirmed in writing.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.

Research and Development

Activities undertaken by a business to develop new products or improve existing ones, often involving innovation and technological advancement.

Capitalized

The process of recording an expenditure as an asset, rather than an expense, allowing a company to spread out the cost over time.

Natural Resource Depletion

The consumption of natural resources faster than they can be replenished, specifically accounted for in the valuation and depreciation of such resources by companies.