If a Party Presents a Check Containing a Forged Signature

question 59

Multiple Choice

If a party presents a check containing a forged signature to a bank for payment that the bank pays,from whom can the bank collect?

• A) the forger only
• B) the forger or the drawer
• C) the forger or the party who presented the check
• D) the forger or the party who presented the check,but only if the party presenting the check had knowledge that the signature was not genuine
• E) the forger and any person who has been a holder

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Definitions:

Capital Expenditures Budget

A plan for projected expenditures on physical assets that will be used for more than one year, aimed at maintaining or improving the company's operations.

Continuous Budgeting

A process of constantly updating a budget for a set period in the future to reflect changes as they happen.

Safety Stock

Additional inventory held by a company to prevent stockouts, usually due to uncertainties in supply and demand.

Master Budget

A comprehensive financial plan that combines all of the individual budgets related to sales, costs, expenses, assets, and liabilities.