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:

Inventory Records

Documentation that tracks the quantity, value, and movement of products or materials a company holds in stock.

FIFO Periodic

An inventory valuation method where goods first purchased or produced are also the first to be sold, assessed periodically at the end of an accounting period.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, used in calculating cost of goods sold during the period.

Inventory Value

The total cost or market value of all the goods held by a company that are ready or will be ready for sale.