The System Whereby Funds Are Moved Between Computer Terminals Without

question 16

Multiple Choice

The system whereby funds are moved between computer terminals without use of checks is

• A) electronic funds transfer.
• B) float.
• C) a lock-box system.
• D) magnetic character recognition.

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Definitions:

Economic Exposure

The risk that a company's cash flow, earnings, or future cash flows will be affected by changes in exchange rates.

Monetary Items

Assets and liabilities that are to be received or paid in a fixed or determinable amount of money.

Functional Currency

The main currency used by a business or economy, reflecting the primary economic environment in which it operates.

Shareholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, representing ownership value in the company.