If the Depository Bank Is Also the Payor Bank, the Check

question 26

Multiple Choice

If the depository bank is also the payor bank, the check is called a(n) _____.

• A) "on-us" item
• B) "provisional credit"
• C) "seasonal-item"
• D) "receipt of the item"
• E) "seasoned-check"

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Definitions:

Withdrawal Of Cash

The act of taking out cash from a business by the owners for personal use.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing what the owner has invested or kept in the business.

Proprietorship

A business structure owned by a single individual, where the owner and the business are legally treated as the same entity.

Accounting Principles

The standardized rules and guidelines that companies are required to follow when reporting financial data, ensuring consistency, reliability, and comparability of financial statements.