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[Lost Check] Jenna Nguyen Teaches Business Law at Learn-A-Lot University

question 1

Multiple Choice

[Lost Check] Jenna Nguyen teaches business law at Learn-A-Lot University. Learn-A-Lot requested that all of the teachers ask the students to wear T-shirts with "Learn-A-Lot University Football" printed on the front on the day of the first football game. All of the teachers were asked to sell the shirts in class. A student, Quinn, wrote a check to Jenna for $10 for payment for one of the shirts. Quinn, however, put Jenna Nguyen as the payee. Jenna wanted to turn the check over to the school, so on the back of the check, she wrote, "Jenna Nguyen, without recourse." She then gave the check to the treasurer for Learn-A-Lot University, Amelia. Unfortunately, the treasurer for Learn-A-Lot dropped the check on the ground as she was going to the bank. A student, Brad, found the check and promptly took it to the bank and cashed it. The treasurer, Amelia, did not want to get into trouble, so she asked Jenna to personally cover the check because she said that Jenna had endorsed the check on the back guaranteeing payment.
-What type of endorsement did Jenna make on the back of the check?

Definitions:

Residual Value

The estimated value of an asset at the end of its lease term or useful life.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an even manner.

Fair Value

The amount one would get from selling an asset or the cost to transfer a liability in a smooth transaction among market participants on the date of valuation.

IFRS

A collection of accounting principles formulated by the International Accounting Standards Board (IASB), known as International Financial Reporting Standards, which instruct on how financial statements should be prepared worldwide.