If a Check Received from a Customer Has Been Deposited

question 14

True/False

If a check received from a customer has been deposited by the seller and is marked on the bank statement as a nonsufficient funds (NSF)amount,then it would appear on the seller's bank reconciliation as a deduction from the ending bank statement balance.

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Definitions:

Fair Market Value

The price at which an asset would exchange hands between a willing buyer and seller, each having reasonable knowledge of the relevant facts, and neither being under compulsion to transact.

Breach of Contract

Occurs when one party fails to fulfill their obligations under a contract, allowing the other party to seek legal remedies.

Unilateral Mistake

A situation in contract law where only one party is mistaken about a basic assumption on which a contract is made, which can impact the enforceability of the contract.

Mistake

An incorrect belief or understanding regarding a fact, judgment, or event that can affect the validity of a contract.