If a Bank Improperly Refuses to Make Payment of Checks

question 31

True/False

If a bank improperly refuses to make payment of checks for which its customer has sufficient funds on deposit,it is liable to the drawer for damages sustained by the drawer in consequence of such dishonor.

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Definitions:

Adjusting Entries

Ledger postings concluded during the final phase of an accounting cycle to assign income and costs to their respective periods of occurrence.

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts.

Adjusted Trial Balance

A compilation of all accounts along with their balances, post-adjustment entries, employed during the creation of financial reports.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts and prepare the company's books for the next period.