Which of the Following Events Would Cause a Bank to Reduce

question 88

Multiple Choice

Which of the following events would cause a bank to reduce a depositor's account?

• A)The depositor orders new checks through the bank at a cost of $50.
• B)The bank collects a note receivable and related interest on the depositor's behalf.
• C)There are outstanding checks drawn on the account at month-end.
• D)There are deposits in transit on the account at month-end.
• E)The bank corrects an error from previous month by adding $75 to the depositor account.

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Definitions:

Notes Payable

Short-term or long-term liabilities in the form of written promises to pay a specified amount with interest by a certain date.

Fixed Assets/Sales Ratio

A financial metric that indicates how efficiently a company is using its fixed assets to generate sales.

Financial Forecast

A prediction of future revenues, expenses, and profits, often used to make informed business decisions.

Financial Planning Models

Quantitative models used to project financial components such as revenue, expenses, and cash flow over a period, aiding in business strategy and decision-making.