Alpha Corp Appears to Be the Named Payee of a Cheque

question 51

Multiple Choice

Alpha Corp appears to be the named payee of a cheque drawn by Ultimate Inc.Ultimate, however, insists that that piece of paper cannot possibly be treated as a valid cheque under the Bills of Exchange Act.That is TRUE if

• A)the instrument was certified before being delivered.
• B)the instrument had been materially altered after being drafted.
• C)the instrument is drawn on Lester, who is the major shareholder of ultimate.
• D)payment is to be made from an overdrawn account.
• E)the instrument is postdated.

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Definitions:

Investee's Net Income

The portion of profit or income earned by a company in which another company has invested.

Periodic Net Income

The net income calculated at specific intervals, such as monthly or quarterly, reflecting the profitability of a company during that time period.

Dividend Revenue

Income earned from an investment in the form of dividends, typically from holding shares of another company.

Outstanding Shares

Outstanding shares refer to the total number of shares of stock that are owned by shareholders at any given time, including shares held by institutional investors and restricted shares held by company insiders.