An Objective of the Check 21 Act Is To

question 61

Multiple Choice

An objective of the Check 21 Act is to:

• A) require banks to accept checks in electronic form, thereby reducing paperwork.
• B) make the check collection process faster by transferring files digitally.
• C) enhance fraud detection.
• D) All of these are objectives.
• E) Only to make the check collection process faster by transferring files digitally and to enhance fraud detection.

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Definitions:

Annual Year-End

The conclusion of a 12-month financial year period on which a company's annual financial statements are based.

Installment Note

A loan or credit agreement that requires a fixed number of payments over a specified period of time.

Annual Year-end Payments

Payments made at the end of the fiscal year, which can include bonuses, dividends, or debt payments.

Journal Entry

A record in accounting that logs the transactions and their impact on the accounts in a financial system using debits and credits.