Common Question Answers
A record is thus kept of expenditure. (b) Cheques are more convenient, especially where large sums are involved, (c) A cheque is a receipt in itself as it must be endorsed by the recipient. The drawer has conclusive evidence that such a sum has been paid, when it was paid, and to whom it was … Read more
A cheque is crossed by writing “ & Co.” across it. When this k done the amount can only be paid through a bank, i.e., the cheque must be paid into a banking account. Thrre is thus an accurate record of the person to whom payment is made. A crossed cheque is thus a very … Read more
A cheque is a written order made upon a bank to pay a stated sum of money to the person named on the cheque. The person to whom payment is to be made must “ endorse ” the cheque, i.e., sign his name on the back of it.
I.O.U, (u I owe you ” ) is a symbol of indebtedness. I t consists of a simple statement acknowledging the indebtedness of the one by whom it is signed and dated.
In times of panic sudden demands are often made by the clients of a bank for a return of their money. Such an occurrence is called a “ run on the bank.” As most of the money held by a bank is invested in securities, the bank may have great difficulty in meeting these demands. … Read more
Stock can be bought in any quantities. Shares can only be bought as units.