Widespread Use of Deposit Banking and the Use of Cheques

question 52

Multiple Choice

Widespread use of deposit banking and the use of cheques in transactions in Canada

• A) dates back to the 19th century.
• B) first occurred shortly after World War I.
• C) first occurred in the early 20th century.
• D) has slowly developed, and the volume of transactions by cheques has surpassed the volume of transactions by cash only since the early 1980s.
• E) first occurred shortly after World War II.

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Definitions:

Bad Debts

Money owed to a company that is unlikely to be paid and written off as a loss.

Credit Policy

The guidelines a company follows to determine credit terms, credit limits, and collection procedures for its customers.

Overdue Accounts

Accounts receivable that have not been paid by the due date, indicating delayed payments from customers.

Lock Box

A banking service provided to companies for the collection of payments from customers, where the payments are sent directly to a post office box, then quickly processed by the bank.