A Bank Is Not Authorized to Pay a Postdated Check

question 43

True/False

A bank is not authorized to pay a postdated check before the date on the check and charge the amount to the customer's account,unless the customer has given notice to the bank.

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Definitions:

Accumulated Depreciation

The cumulative depreciation expense charged on a fixed asset throughout its useful life.

Contra-Liability

A liability account that is used to reduce the value of a related liability, not commonly used in accounting terminology.

Balance Sheet

A fiscal statement detailing a company's holdings, dues, and the portion owned by shareholders, recorded at a precise time.

Prepaid Rent

An asset account that represents rent payments made in advance of the period to which they relate.