Which of the Following Statements Concerning Electronic Funds Transfers Is

question 112

Multiple Choice

Which of the following statements concerning electronic funds transfers is not correct?

• A)Businesses sometimes receive payments from customers via EFT.
• B)An EFT occurs when a customer electronically transfers funds from his or her bank account to the company's bank account.
• C)Because electronic funds transfers are deposited directly into the company's bank account,they require additional internal control procedures.
• D)To process an EFT,the accounting department merely records journal entries to debit Cash and credit Accounts Receivable from each customer.

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Definitions:

Inside Information

Privileged, non-public information about a corporation or its securities that could provide an unfair advantage if used in trading.

1934 Securities Exchange Act

U.S. legislation that governs the trading of securities, including the establishment of the SEC.

Registration

The act of recording information or details officially with a designated authority or system, typically for recognition or to obtain certain rights.

Rule 10b-5

A regulation under the U.S. Securities and Exchange Act of 1934 which prohibits any act or omission resulting in fraud or deceit in connection with the sale of securities.