What Is Overdraft Protection

question 13

Multiple Choice

What is overdraft protection?

• A) An increase in the maximum amount for which a check may be written
• B) An agreement that the bank will transfer money between accounts as needed
• C) An extra review to prevent errors in calculating the balance of a bank account
• D) A delay in cashing any check written on an account without adequate funds to cover it

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Definitions:

Ledger Accounts

Record books or digital records in accounting that are used to store, organize, and summarize a company's financial transactions, sorted by account.

AASB 10/IFRS 10

Standards dealing with the principles for the preparation and presentation of consolidated financial statements when an entity controls one or more other entities.

Voting Shares

Shares of a company's stock that grant the shareholder the right to vote on corporate matters, such as electing the board of directors and approving major corporate actions.