A Written Stop-Payment Order

question 16

Multiple Choice

A written stop-payment order:

• A) is valid for only 14 days and cannot be extended further even if written instructions are given to the bank by the customer.
• B) is valid for only three months unless confirmed in writing.
• C) is not valid for more than 48 hours.
• D) is valid for six months, and can be extended for another six months if written instructions are given by the customer.

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Definitions:

Product B

A placeholder name often used to refer to a secondary product in examples or case studies.

Sales on Account

Transactions where goods or services are sold and payment is deferred, creating accounts receivable.

Merchandise

Goods bought and sold by retailers.

Cash Collections

The process of gathering monies that are owed to a business by its customers or clients.