Harvey Issued a Check to AgribizCo And, After Mailing the Check

question 1

Multiple Choice

Harvey issued a check to AgribizCo and, after mailing the check, suffered a heart attack and died. In the regular course of business, the bank paid the check when presented by AgribizCo for payment, despite the fact that the bank had received notice fourteen (14) days earlier of Harvey's death. In terms of the bank's payment of the check

• A) the bank is not liable because the payment was made within 20 days of the notification of the death.
• B) the bank is potentially liable to Harvey's estate.
• C) the bank is not liable unless the Harvey's executor posted an indemnity bond.
• D) the bank's authority to act for Harvey ended on his death, regardless of whether the bank had been notified of Harvey's death.

---

Definitions:

Insurance Premium

A periodic payment made by an individual or company to an insurance company in exchange for coverage against specified risks.

Office Supplies

Office supplies encompass a range of items used in an office for the purpose of conducting day-to-day operations, including stationery, paper, pens, and computing equipment.

Journal Entries

The records of financial transactions in an accounting system that detail the accounts affected and in what manner, serving as the primary means to document financial activity.

General Ledger

A complete record of all financial transactions over the life of a company, used to compile the financial statements.