Sara Has a Checking Account at Charter Bank

question 69

Multiple Choice

Sara has a checking account at Charter Bank. Ethan steals one of her blank checks, writes a check for $250 to himself, and then forges Sara's signature. Ethan then indorses the instrument to Paul in payment of a debt. Paul, who does not know of the forgery, presents the instrument to Charter Bank for payment. At Charter Bank's request, Paul indorses the instrument, and the bank then pays him $250. Which of the following is correct?

• A) Paul has breached the warranties on presentment.
• B) Ethan has breached the warranties on presentment.
• C) Sara has breached the warranties on presentment.
• D) Both Paul and Ethan have breached the warranties on presentment .

Understand the fundamentals of the accounting equation (Assets = Liabilities + Owner's Equity).

Identify components of the balance sheet (Assets, Liabilities, Owner's Equity).

Analyze transactions to determine their effect on the accounting equation.

Understand the concept of purchasing assets and its impact on the accounting equation.

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Definitions:

Population

The total number of individuals or organisms of a particular species living in a specific area or region.

Control Condition

In experimental research, it is a standard or baseline condition against which the effects of the experimental conditions are compared.

Independent Variable

In an experimental setting, the variable that is manipulated by the researcher to observe its effect on the dependent variable.

Remedial Reading

Educational programs or strategies designed to improve reading skills in those who struggle with literacy.