When a Customer Deposits a Check into a Checking Account

question 73

True/False

When a customer deposits a check into a checking account for collection,the depository bank does not have to pay the customer the amount of the check until the check "clears."

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Definitions:

Cumulative

Referring to a total that increases over time by adding successive amounts.

Callable

a feature of a financial security that allows the issuer to repurchase or redeem the security before its maturity date.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares, rather than cash.

Contributed Capital

Funds that shareholders provide to a company in exchange for shares of stock, representing the equity investment in the company.