Daisy Signs a Check "Pay to the Order of Ewan

question 3

Multiple Choice

Daisy signs a check "pay to the order of Ewan" drawn on Daisy's account in Finance Bank. Graham forges Ewan's indorsement. Finance Bank pays the check. Most likely

• A)Daisy will be liable for the amount.
• B)Ewan will have to pay Daisy for the amount.
• C)Finance Bank will have to recredit Daisy's account.
• D)the Federal Reserve will reimburse all parties for their costs.

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Definitions:

Government Grant

Financial assistance provided by the government to entities, usually in the form of cash or tax breaks, with specific conditions for use.

Performance Obligation

A commitment in a contract to transfer a distinct good or service to a customer, which is a fundamental concept in revenue recognition.

AASB 141

An Australian Accounting Standard that deals with the agricultural activity, providing guidance on the accounting for agricultural produce and the land on which agriculture is conducted.

IAS 41

An International Accounting Standard that provides the accounting treatment for agricultural activity, including the recognition and measurement of biological assets and agricultural produce.