If the Amount of a Check Is Altered by an Employee

question 31

Multiple Choice

If the amount of a check is altered by an employee after it has cleared the bank, the change can be detected by:

• A)comparing the amount written on the check face to the amount written in the cash disbursements journal.
• B)comparing the magnetic imprint of the amount paid to the amount written on the check face.
• C)examining the endorsement on the back of the check.
• D)comparing the check number on the face of the check to the check number in the cash disbursements journal.

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Definitions:

Promissory Estoppel

A legal principle that enables a party to recover on a promise made when they have reasonably relied on that promise to their detriment, even if a formal contract does not exist.

Illusory Contract

An agreement that fails to bind at least one of the parties due to the lack of a definite promise or because the terms allow for withdrawal without consequence.

Adequacy Of Consideration

The principle that the value exchanged in a contract must be fair and reasonable to both parties involved.

Fraud

Intentional misleading to achieve illicit benefits or to cheat someone out of their rightful entitlement.