Which One of the Following Is an Expected Result of the Check

question 41

Multiple Choice

Which one of the following is an expected result of the Check Clearing Act for the 21^st Century?

• A)Firms will have to wait three days before having access to their deposited funds.
• B)Zero-balance accounts will be eliminated.
• C)Lockboxes will be prohibited.
• D)Collection float, but not disbursement float, will be reduced.
• E)Both collection and disbursement float will be reduced.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset evenly across its useful life.

Resale Value

The estimated amount for which an asset can be sold at the end of its useful life, considering factors like market demand and the asset's remaining utility.

Net Operating Losses

Financial losses that occur when a company's operating expenses exceed its revenues, which can be applied to reduce taxable income.

CCA Class

In Canadian taxation, Capital Cost Allowance (CCA) Class refers to categories of assets that are subject to different rates of depreciation for tax purposes.