Compared to an Electronic Payments System,a Payments System Based on Checks

question 35

Multiple Choice

Compared to an electronic payments system,a payments system based on checks has the major drawback that

• A)checks are less costly to process.
• B)checks take longer to process,meaning that it may take several days before the depositor can get her cash.
• C)fraud may be more difficult to commit when paper receipts are eliminated.
• D)legal liability is more clearly defined.

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Definitions:

Gross Production

The total output of a company or economy without deducting any costs or losses.

Monthly

Occurring, produced, or published every month.

Petty Cash

A small amount of cash available for small business expenses used for postage stamps, inexpensive office supplies, and small charitable donations, usually maintained in a locked container.

Depleted

Consumed, emptied, exhausted.