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.

---

Definitions:

Equivalent Units

A method used in cost accounting to allocate costs to partially completed goods, calculated as the number of complete units that could have been produced with the amount of work done.

Conversion Costs

refer to the combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.

Production Data

Information related to the manufacturing process, including quantities produced, machine hours used, and raw materials consumed.

Equivalent Units

A concept in process costing that converts partially completed units into a number of fully completed units for accounting purposes.