NABTEB Accounting 2020 Objective — Question 5
Question 5 of 50 from the National Business and Technical Examinations Board (NABTEB) Accounting 2020 Objective paper, with the correct answer and a full explanation.
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Adiza gave an instruction to her banker to pay a premium of Le 30,000 from her account to Union Rock Insurance on a quarterly basis for a policy. This instruction is an example of
- A. credit transfer
- B. direct debit
- C. standing orderCorrect
- D. bank charges
Explanation
A standing order is an instruction issued to a bank to make a payment at a regular stated interval from an account.
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