On May 1,Dooley Signs a Check That Is Payable to the Order

question 24

Multiple Choice

On May 1,Dooley signs a check that is payable to the order of Extra Credit Corporation and that is dated July 1.This check is

• A)negotiable.
• B)nonnegotiable,because it is payable to Extra Credit Corporation.
• C)nonnegotiable,because it is postdated.
• D)nonnegotiable,because it is signed by Dooley.

---

Definitions:

Bank Service Charges

Fees charged by banks for handling transactions, maintaining accounts, and providing other financial services.

NSF Check

A check that cannot be processed because the account on which it is drawn lacks sufficient funds, standing for "non-sufficient funds."

Bank Reconciliation

The process of comparing and matching the balances of an entity's accounting records with corresponding bank statements to ensure accuracy.

Journal Entry

A record in the accounting ledger that notes every financial transaction of a business, including the accounts affected and the date of the transaction.