Each of the Following Causes a Cash Flow Problem Except

question 231

Multiple Choice

Each of the following causes a cash flow problem except

• A) a large proportion of credit sales.
• B) embezzlement of company funds.
• C) unexpected slow selling seasons.
• D) slow-paying customers.
• E) customers who pay early.

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Definitions:

Notice of Dishonor

A formal notification indicating that a negotiable instrument, such as a check or bill of exchange, has been presented for payment and refused.

Cashier's Check

A check issued by a bank, drawn from its own funds and signed by a cashier or teller, guaranteeing payment to the payee.

Primarily Liable

Being the first or main party responsible for fulfilling a financial or legal obligation.

Fraud in the Factum

Refers to a specific type of fraud where a person is deceived into signing a document not knowing its true nature or essence.