An Objective of the Check 21 Act Is To

question 75

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 the above.
• E)Both (b) and (c).

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Definitions:

Short-term Borrowing

Borrowed funds that are expected to be repaid within a short period, usually one year or less.

Accounts Receivable

Money owed to a business by its clients for goods or services offered on credit.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Supplier

An individual or company that provides goods or services to another entity under terms specified in a contract.