Instead of Depositing an "On Them" Check for Collection, a Depositor

question 13

Multiple Choice

Instead of depositing an "on them" check for collection, a depositor can physically submit the check for payment at the payer bank. This is called ________.

• A) provisional credit
• B) indorsement of the check
• C) presentment across the counter
• D) final settlement

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Definitions:

Significant Influence

The capacity of an investor to affect the financial or operating policies of an investee without having full control or majority ownership.

Individual AFS Securities

Available-for-Sale (AFS) securities are financial assets held by an organization that can be sold in the market, where "individual" refers to each specific security within the AFS category.

Net Proceeds

The amount of money received from a transaction after deducting all associated costs and expenses.

Cost Method

An accounting approach used for investments, where the investment is recorded at cost and adjustments are made for dividends received or permanent declines in value.