Suppose Alan Receives a Check for $300 from a Bank

question 94

Multiple Choice

Suppose Alan receives a check for $300 from a bank in Dallas.He deposits the check in his account at his Baltimore bank.Which of the following is Alan's Baltimore bank likely to collect the $300 from?

• A) The Baltimore bank's regional Federal Reserve bank.
• B) The U.S.Treasury.
• C) The main Federal Reserve Bank in Washington,D.C.
• D) The Federal Reserve Board of Governors.

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Definitions:

Standard Cost

A predetermined cost of manufacturing, servicing, or marketing goods, used as a benchmark to measure performance.

External Financial Statement Reporting

The process of preparing and disclosing financial statements to external stakeholders, such as investors, creditors, and regulatory bodies, to provide insight into a company's financial health.

Generally Accepted Accounting Principles

A set of rules and standards for financial reporting that companies in the U.S. must adhere to.

Gross Profit

The financial gain made after deducting the cost of goods sold from total revenue.