To Pay for a Minor Repair,May Writes a Check for $50

question 21

Multiple Choice

To pay for a minor repair,May writes a check for $50 to David,who indorses the check in blank and gives it to his sister,Glenda,for her birthday.She indorses the check in blank and gives it to her trash collector to pay her quarterly bill.Which of the following is correct?

• A) David made transfer warranties to Glenda and to her trash collector.
• B) David did not make transfer warranties to Glenda because Glenda gave no consideration for the transfer of the check to her.
• C) Neither David nor Glenda made any transfer warranties because they indorsed the check with blank indorsements, making the check bearer paper.
• D) The trash collector must wait until the check is dishonored before making a transfer warranty claim against Glenda.

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Definitions:

Accounting Records

Documents and books that keep track of all financial transactions of a business or individual.

Patient Financial Obligations

The financial responsibilities that patients must fulfill regarding their healthcare services, which may include copays, deductibles, and payments for services not covered by insurance.

Services Rendered

Work or assistance provided by someone following a request or agreement.

Payment Schedule

A predetermined plan outlining the specific dates and amounts for payments to be made by one party to another, often used in billing and financial agreements.