Which Statement Relating to Dishonoured Cheques Is True

question 6

Multiple Choice

Which statement relating to dishonoured cheques is true?

• A)They are cheques from debtors deposited into the firm's bank account but not paid by the drawer's bank due to lack of funds or for other reasons
• B)They can be adjusted for by making a negative entry in the sales journal
• C)They must be listed in the bank reconciliation
• D)They appear as credits on the bank statement

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Definitions:

Gold Standard

A monetary system in which the value of a country's currency is directly linked to the amount of gold held in reserve.

Domestic Price

The price of a good or service within a country, determined by domestic demand and supply.

Employment Levels

The number or percentage of people within a population who are currently employed, indicating the health of an economy.

International Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold, allowing for stable exchange rates among countries.