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QuestionAccounting

"Which is a reason for account suspension? Choose an appropriate option and select Submit. A. Account delinquent after 31 days B. Account delinquent after 61 days C. Two returned checks in a 24 -month period D. Two disputed transactions in a 12 -month period"
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Answer

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Step 1:
I'll solve this problem step by step:

Step 2:
: Carefully analyze the options for account suspension criteria

Step 3:
: Evaluate each option systematically

- Option A: Account delinquent after 31 days - This typically does not result in immediate suspension - Usually, accounts receive warnings before suspension - Option B: Account delinquent after 61 days - This is a more serious delinquency period - Often triggers more severe account actions - However, not necessarily an automatic suspension - Option C: Two returned checks in a 24 -month period - Returned checks indicate potential financial instability - Suggests potential fraud or insufficient funds - Represents a significant risk to the financial institution - Option D: Two disputed transactions in a 12 -month period - Disputes can indicate potential unauthorized activity - Multiple disputes raise red flags about account security - But may not automatically lead to suspension

Step 4:
: Determine the most likely reason for account suspension

Step 5:
: Select the most appropriate option based on financial risk

Final Answer

Two returned checks in a 24 -month period Rationale: Returned checks demonstrate a higher financial risk and potential inability to manage account obligations, making this the most likely reason for account suspension.