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

question 41

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

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Definitions:

Stock Returns

The returns a shareholder earns on their investment, including both price appreciation and dividends.

Earnings Announcement Date

The specified day on which a company publicly releases its financial performance results for a given period.

IASB

International Accounting Standards Board; the organization responsible for developing and publishing the International Financial Reporting Standards (IFRS).

FASB

The Financial Accounting Standards Board, an organization responsible for establishing financial accounting and reporting standards in the U.S.