Question

Why are electronic transfers safer than cash?
(1 point)
Cash is harder to trace if lost.
Electronic transfers are well documented.
Cash is guaranteed and electronic transfers are not.
Electronic transfers are more common than using cash.
A)
A business writes a check to a supplier. However, there is an accounting error that the business owneris unaware of and there is not enough money in the account to cover the check. Has the business actedin bad faith?
(1 point)
Yes, any time there is a financial error it demonstrates bad faith.
Yes, the business did not intend to pay the supplier as promised.
No, businesses cannot be held responsible if there are banking issues.
No, it was a genuine error, but it is the business’s duty to correct the error

Answer 1

1) Electronic transfers are well documented.
Reason: electronic payments create records and traces that make them safer and easier to audit or recover than cash.

2) No, it was a genuine error, but it is the business’s duty to correct the error.
Reason: an accounting mistake isn’t bad faith unless intentional; the business must notify the supplier and rectify the shortfall (and cover any fees/penalties).