Statement I: Welfare Banks Are Check-Cashing Outlets

question 62

Multiple Choice

Statement I: Welfare banks are check-cashing outlets.
Statement II: To cash a check at a check-cashing outlet,you usually have to pay a fee of one to three percent of the value of the check.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Purpose

The reason for which something is done or created, or for which something exists.

Voucher System

An accounting system that involves preparing and approving vouchers before transactions are recorded and payments made, to ensure financial controls.

Control Procedures

Measures and policies implemented by a company to ensure the integrity of financial and accounting information and compliance with laws and regulations.

Cash Equivalents

Temporary investments which can quickly be converted into specific cash sums and have a negligible risk of value fluctuation.