Tanika Has a Checking Account at First Bank

question 6

Multiple Choice

Tanika has a checking account at First Bank.Orrin steals one of her blank checks,writes a check for $250,and then forges Tanika's signature.He then presents the check to First Bank for payment.First Bank pays the forged instrument.Which of the following statements is correct?

• A) First Bank will have to recredit the $250 to Tanikas account,but they can collect from Orrin if they can find him and he has the money.
• B) First Bank will have to recredit the $250 to Tanika's account,but only if they can collect the $250 from Orrin.
• C) Tanika is primarily liable on the check even if she did not sign it and was not negligent in allowing Orrin to take the blank check.
• D) First Bank is liable only if they have a signature card on file for Tanika.

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Definitions:

Loss

A financial term referring to the condition where expenses exceed revenues, leading to a negative income.

Impaired Goodwill

A condition where the value of goodwill, often related to acquisitions, diminishes due to factors such as deteriorated brand reputation or market position.

Operating Expenses

Costs associated with the day-to-day operations of a business.

Amortization Expense

The systematic allocation of the cost of an intangible asset over its useful life, reflecting the consumption of the asset's value over time.