When a Payment Is Tendered by Check,_____

question 20

Multiple Choice

When a payment is tendered by check,_____.

• A) the buyer does not have the right to retain the goods and must give them back to the seller
• B) the payment is not conditional but can be considered as final or complete
• C) the buyer has the right to retain the goods if the bank refuses to pay the check
• D) the duty to pay for the goods is satisfied by the buyer if the bank pays the check

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Definitions:

Note Issuance

The process of creating and distributing promissory notes, which are legal promises to pay specified amounts at future dates.

Probable Likelihood

A term indicating a high chance of occurrence or expectation that an event will happen.

Liability Estimation

The process of assessing the potential liabilities or debts that a business may incur in the future.

Estimable Liability

A financial obligation or debt that can be accurately estimated and measured for accounting and reporting purposes.