How Quickly Can a Bank Receive Payment Once It Transmits

question 82

Multiple Choice

How quickly can a bank receive payment once it transmits a copy of a check to the bank on which the check was drawn?

• A)Immediately
• B)In one day
• C)Between one and two days
• D)In two days
• E)Between two and three days

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Definitions:

Net Operating Income

This is the total profit of a business after operating expenses are subtracted from gross revenue but before taxes and interest expenses are deducted.

Absorption Costing

A method of product costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Product Costs

Costs that are considered to be directly associated with the production of goods or services, including direct materials, direct labor, and manufacturing overhead.

Fixed Production Costs

Costs that do not vary with the level of production, such as rent for manufacturing facilities.