Which of the Following Is Correct with Respect to a Bank

question 58

Multiple Choice

Which of the following is correct with respect to a bank customer's duty to discover and report unauthorized signatures?

• A) The customer is required to exercise reasonable care and promptness to examine the bank statement.
• B) A customer's duty of examination includes checking the signatures of payees or indorsers.
• C) The bank is liable on all items with unauthorized signatures even if these canceled checks were returned to the customer four years prior to the discovery of the alterations.
• D) The bank is not required to exercise ordinary care in paying the items.

---

Definitions:

Short Cycle

A brief period or sequence of events, typically referring to a rapid cycle of operation or production.

Repetitive Tasks

Tasks or activities that are performed in the same manner, following a specific routine or pattern, with little variation over time.

Task Identity

The feeling of responsibility or pride that results from doing an entire piece of work, not just a small part of it.

Short Job Cycles

Employment or job assignments that are characterized by brief periods of work, often due to project-based tasks or temporary positions.