Which of the Following Statements Relating to Dishonoured Cheques Is

question 31

Multiple Choice

Which of the following statements relating to dishonoured cheques is incorrect?

• A) They appear as credits on the bank statement.
• B) 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.
• C) They are not listed in the bank reconciliation.
• D) They are adjusted for by entering a negative amount into the cash receipts journal.

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Definitions:

Market Power

The ability of a firm or group of firms to influence the price of a product or the conditions of the market.

Inefficiency

The lack of economic efficiency, occurring when resources are not utilized optimally according to certain criteria.

Market Power

The ability of a firm or group of firms to manipulate the price or quantity of a good or service in the market, often through controlling supply or market dominance.

Monopoly Power

The ability of a single seller to control market prices and exclude competitors within a particular market.