A business writes a check to a supplier. However, there is an accounting error that the business owner is unaware of and there is not enough money in the account to cover the check. What is the best strategy for avoiding this problem in the future?

Question

A business writes a check to a supplier. However, there is an accounting error that the business owner is unaware of and there is not enough money in the account to cover the check. What is the best strategy for avoiding this problem in the future?

(1 point)
A. Switch to using cash for all business transactions.
B. Assume it was a one-time problem and keep taking checks.
C. Insist on electronic payments so there is less opportunity for error.
D. Stop doing business with this client since the client committed a crime.

Answer 1

C. Insist on electronic payments so there is less opportunity for error.

Using electronic payments can help avoid accounting errors such as insufficient funds in the account when writing a check. Electronic payments can be processed immediately, ensuring that there are enough funds available before the transaction is completed. Additionally, electronic payments can provide a more efficient and secure way of conducting business transactions.