Shakira Issues a Check Drawn on Thrifty Bank to Ranch

question 4

Multiple Choice

Shakira issues a check drawn on Thrifty Bank to Ranch & Farm Supply to pay for a rototiller. Later, Shakira discovers a defect in the device and orders Thrifty to stop payment on the check. Shakira does not renew the order, and the bank clears the check eight months later. The bank

• A) must recredit Shakira's account.
• B) must obtain funds from Ranch & Farm to cover the check.
• C) must substitute acceptable goods.
• D) need not recredit Shakira's account.

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Definitions:

Accuracy

The extent to which the outcome of a measurement, computation, or detail agrees with the true value or an established norm.

Depreciation Policy

A specific method or approach a company uses to allocate the cost of a tangible asset over its useful life.

Underground Storage

Facilities used for the storage of goods, valuables, or commodities below the earth's surface.

Market Value

The existing value at which a service or asset may be sold or bought within a market environment.