Final answer:
A change in the accounts payable balance triggers the 'establish payable' in an AP/CD process, occurring when an invoice is received. A check payment transfers money from the payer's to the payee's account, while an overdraft represents a negative balance and potential fees.
Step-by-step explanation:
In an AP/CD process, which stands for Accounts Payable/Cash Disbursement, the trigger to 'establish payable' is typically 2) A change in the accounts payable balance. This occurs when a company receives an invoice for goods or services provided, which results in an increase in its accounts payable. This is a liability on the balance sheet and represents an obligation to pay a creditor or vendor for business-related purchases.
When you use a check for payment for goods and services, the store gets the money once the check is processed and the funds are transferred from your bank account to the store's account. However, if the account does not have sufficient funds to cover the check, this can lead to an overdraft, which means the account balance goes negative, and the bank may charge fees for covering the payment.