Which of the Following Is True of Check Collection

question 87

Multiple Choice

Which of the following is true of check collection?

• A)Checks and other drafts collected through the banking system usually have two parties-the drawer and the drawee bank.
• B)If the payee deposits the check at a bank other than the drawee bank,the latter will take a series of steps necessary to reflect the deposit as a credit to the payee's account.
• C)If the payee deposits the check at the same bank as the drawee bank,the depositary bank will make the ledger entry showing the deposit as a credit to the payee's account.
• D)If the drawee and depositary banks are in the same town or county,the depositary bank will indorse the check and deliver it to the drawee bank for payment.

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Definitions:

Operational Activities

Actions and tasks associated with the day-to-day operations of a business, focusing on core business activities.