John Writes a Check,making It Payable to Jane Smith

question 90

Multiple Choice

John writes a check,making it payable to Jane Smith.Before Jane indorses the check,Ralph steals it,forges Jane's indorsement,and cashes it at the local grocery store.John's bank charges this check against John's account.John learns of the forgery and complains.Who is ultimately liable for this loss,assuming Ralph cannot be found?

• A) John
• B) Jane
• C) Ralph
• D) John's bank
• E) The grocery store

---

Definitions:

Unit Sales

The quantity of items sold by a company during a specific period, not accounting for returns or refunds.

Break-Even Sales

The amount of revenue required to cover both the variable and fixed costs of a business, resulting in neither profit nor loss.

Margin Of Safety

The difference between actual sales and sales at the break-even point, providing a cushion that measures the business's ability to withstand sales fluctuations.

Current Sales

The total revenue generated from goods or services sold by a company during the current period.