While Receiving a Properly Drawn and Payable Check on a Person's

question 24

Multiple Choice

While receiving a properly drawn and payable check on a person's account,which of the following circumstances make it a necessity for the bank to honor the check?

• A)When the check is stale.
• B)When there are sufficient funds in the account.
• C)When there is a stop payment order.
• D)When a postdated check is presented before the date of the check.

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Definitions:

Return On Investment

A measure of the profitability of an investment, calculated as a percentage of the return divided by the cost of the investment.

Return On Investment

A metric to assess the effectiveness or profit generated by an investment in comparison to its expense.

Net Operating Income

Net operating income is the total profit of a company derived from its regular, core business operations, excluding deductions for interest and taxes.

Average Operating Assets

Average operating assets are the mean value of the resources employed in a company's operations over a certain period, used to evaluate the efficiency of asset use in generating revenue.