Soiya Is a Holder in Due Course of a Check

question 42

Multiple Choice

Soiya is a holder in due course of a check.Soiya goes to the drawee bank,Last Chance Bank,to cash the check.What is the liability of Last Chance?

• A) Last Chance Bank is primarily liable on the check.
• B) Last Chance Bank is not primarily liable on the check until it accepts the check.
• C) Last Chance Bank is secondarily liable on the check.
• D) Last Chance Bank is not secondarily liable on the check until it accepts the check.

---

Definitions:

Salaries Expense

The total amount of salary payments made to employees, recognized as an expense in the accounting period in which the employees' services are rendered.

Office Salaries

Office Salaries refer to the compensation provided to employees who perform administrative duties within an office.

Accounts Payable

Money owed by a company to its suppliers or creditors for goods and services received but not yet paid for.

Explanations

Detailed accounts or statements clarifying or justifying something.