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:

Debt Collectors

Individuals or companies engaged in collecting debts on behalf of creditors, typically for debts that are past due.

Third Parties

Individuals or entities that are not directly involved in a contract or legal agreement but may be affected by its outcome or have an interest in it.

Magnuson-Moss Warranty Act

A federal law enacted in 1975 that governs warranties on consumer products to ensure transparency and fairness.

Transferee

An individual or entity that receives the transfer of property, rights, or interest from another.