Accounting Multiple Choice Question – 17 February 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

A cheque that was issued by a firm and sent to one of its creditors has not yet appeared on the firm’s bank statement. This cheque is known as . . .

Select ONE answer:

  1. a standing order.
  2. a dishonoured cheque.
  3. a credit transfer.
  4. an outstanding cheque.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct – a standing order is an instruction to a bank to pay a specified amount out of one’s account at regular intervals.
  2. Not correct – a dishonoured cheque is a cheque returned by a bank to the person who presented it because there are insufficient funds in the drawer’s account to meet the cheque.
  3. Not correct – a credit transfer is a transfer of funds from a person or bank account into another bank account.
  4. Correct

 

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