Brandy Forges Caleb's Signature on a Check "Payable to the Order

question 15

Multiple Choice

Brandy forges Caleb's signature on a check "payable to the order of Brandy" drawn on Caleb's account in Downtown Bank. Caleb's forged signature is​

• A) ​effective if an innocent third party accepts the check.
• B) ​effective to the degree that it matches Caleb's genuine signature.
• C) ​effective to the extent that Downtown Bank debits Caleb's account.
• D) ​not effective.

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Definitions:

Investing Activities

Financial transactions related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Operating Activities

Component of cash flow statement that reflects the cash generated or spent on a company's main business operations.

Minimum Lease Payments

The lowest total amount that a lessee is expected to pay over the lease term under a lease agreement.

Executory Costs

Expenses associated with executing a contract, including maintenance and insurance, but excluding depreciation.