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.

---

Definitions:

Double-Declining-Balance Method

An accelerated method of depreciation that doubles the regular depreciation rate, reducing the asset’s book value more quickly in the early years of its life.

Depreciation Expense

Assigning the cost of a material asset over the duration of its usefulness.

Estimated Salvage Value

The projected value of an asset at the end of its useful life, used in calculating depreciation.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life.