Which of the Following Is True About the Combining Financial

question 126

Multiple Choice

Which of the following is true about the combining financial statements?

• A) They are used whenever a non-major column is used in one of the fund financial statements
• B) The total column in the combining statements is not always the same as the non-major funds column in the basic financial statements
• C) Both of the above
• D) Neither of the above

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Definitions:

Without Recourse

A term indicating that the seller of a financial instrument or commercial paper relinquishes the right to demand payment from the issuer in the case of default.

Cashier's Check

A check issued by a bank, drawn on its own funds rather than that of an account holder, and commonly used to guarantee payment.

Certified Check

A check verified by a bank, guaranteeing that the writer of the check has enough funds available for the transaction.

Drawee

The party in a financial transaction who is directed to pay a certain amount of money as outlined in a draft or check.