Warranties of a Person Obtaining Payment or Acceptance of an Unaccepted

question 67

Multiple Choice

Warranties of a person obtaining payment or acceptance of an unaccepted draft include:

• A) the warrantor is a person entitled to enforce the draft.
• B) the warrantor has no knowledge that the drawer's signature is unauthorized.
• C) the draft has not been altered.
• D) All of these are correct.

---

Definitions:

Owner's Equity

The total value that would accrue to a business's owners after all liabilities are subtracted from all assets; also known as shareholder's equity or net worth.

Liabilities

Economic debts or obligations a company is responsible for, which are to be paid off over time through the exchange of economic advantages.

Owner's Withdrawal

Amounts of cash or other assets that the owner takes from the company for personal use.

Cash Account

An account that records all transactions involving cash inflows and outflows within a company.