A Customer Can Escape Liability for Failing to Notify the Bank

question 53

True/False

A customer can escape liability for failing to notify the bank of forged or altered checks when the customer can prove that the bank was negligent.

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Definitions:

Electronic Funds Transfer

The electronic exchange or transfer of money from one account to another, either within the same financial institution or across different institutions, through computer-based systems.

Bank Deposits

Money placed into a banking institution for safekeeping, which can include savings accounts, checking accounts, and certificates of deposit.

Petty Cash Management

The process of overseeing and controlling the petty cash fund, a small amount of cash on hand used for minor expenses.

Internal Control Systems

Methods and systems adopted by an organization to maintain the accuracy of its financial and accounting records, ensure responsibility, and deter deceit.