Which of the Following Occurs When Retailers Transform Paper Checks

question 59

Multiple Choice

Which of the following occurs when retailers transform paper checks they take from customers and process them electronically?

• A)Check transfer
• B)Check substitute
• C)Check exchange
• D)Check conversion

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Definitions:

Compound Journal Entry

A journal entry that includes multiple debits, credits, or both, affecting more than two accounts.

Accounts

Records of financial transactions pertaining to specific assets, liabilities, equity, revenues, and expenses within an organization.

Compound Entry

A type of journal entry in accounting that involves more than two accounts, with multiple debits, credits, or both.

Journalizing

The process of recording business transactions in the journal of accounting as part of the double-entry bookkeeping system.