JimBob, a Guest in Jimbo's House, Opens Jimbo's Desk and Writes

question 43

Multiple Choice

JimBob, a guest in Jimbo's house, opens Jimbo's desk and writes a check to himself on Jimbo's checking account, forging Jimbo's signature. He indorses the check " JimBob Saunders" and presents it to Jimbo's bank for payment. If the bank pays, can it collect from Jimbo's account?

• A) Yes, because JimBob is the real payee.
• B) Yes, because Jimbo's name is on the check.
• C) No, because bank should have known the signature is forged.
• D) No, because Jimbo  did not know of the check.

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Definitions:

Profit or Loss

Represents the financial result of a company's operations, calculated as its revenue minus expenses.

Interim Dividend

An interim dividend refers to a dividend payment made before a company's annual earnings are calculated and finalized. It's typically issued to shareholders from the profits earned in part of the company's financial year.

Issued Capital

The portion of a company's capital that has been allocated to shareholders in the form of shares.

Consolidated Financial Statements

Financial statements that present the financial position and performance of a parent company and its subsidiaries as if they were a single economic entity.