Fact Pattern 27-2B

question 35

Multiple Choice

Fact Pattern 27-2B
Thom draws a check,on his account in State Bank in New York,payable to Digital Computers,Inc. ,in San Francisco.Digital deposits the check in its ac?count at First National Bank.First National deposits the check in the Federal Reserve Bank of San Francisco,which transfers it to the Federal Reserve Bank of New York.That Federal Reserve Bank sends the check to State Bank.
-Refer to Fact Pattern 27-2B.Digital's bank is

• A)the cashing bank.
• B)the depositary bank.
• C)the intermediary bank.
• D)the payor bank.

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Definitions:

Accounting Principles

The foundational concepts and guidelines that govern the field of accounting, such as revenue recognition, matching principle, and full disclosure.

Extraordinary Item

Events or transactions that are both unusual in nature and infrequent in occurrence, impacting a company's financial position.

Selling Activities

Actions undertaken by a company to promote and sell its products or services, including advertising, sales promotions, and personal sales.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.