Use the Fact Situation Above to Answer the Question

question 26

Multiple Choice

Use the fact situation above to answer the question. In this case,if the certified cheque is negotiated

• A)Albert's advice to the bank of the loss of the cheque discharges the bank from having to honour it.
• B)being certified,no stop payment can be put on the cheque and the bank must honour it.
• C)Albert can put a stop payment on the cheque and the bank will not have to honour it.
• D)the bank can put a stop payment on the cheque and the bank will not have to honour it.
• E)none of the above

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Definitions:

Loss on Acquisition

A financial loss that occurs when the cost to acquire a company or asset exceeds its fair value.

Gain on Sale

The profit realized from the sale of assets that exceeds the book value of those assets.

Other Comprehensive Income

Income that is not included in net income, including items that are not realized, such as foreign currency translation adjustments and unrealized gains or losses on investments.

Current Period Profit or Loss

The net income or loss for the current reporting period, reflecting the financial performance of an entity over that timeframe.