Daylight Overdrafts Occur When

question 60

Multiple Choice

Daylight overdrafts occur when:

• A)FIs in different time zones clear transactions
• B)FI debits exceed credits during the day
• C)FI credits exceed debits during the day
• D)the sum of all debits transmitted over the system exceeds the sum of all credits during the day

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Definitions:

Correcting Entry

An accounting entry made to correct an error found in the previously issued financial statements or records.

Service Revenue

Income earned by a company for providing intangible products or services to customers.

Accounts Receivable

The sum that clients or customers owe to a business for products or services that have been delivered, but not yet compensated for.

Current Liabilities

Financial obligations or debts a company must pay within a year or within its normal operating cycle.