Jacob Writes Phillip an Uncertified Check for $500 on January

question 42

Multiple Choice

Jacob writes Phillip an uncertified check for $500 on January 1.Seven months later,Phillip presents the check at the bank.The bank pays the check in good faith without consulting Jacob.The bank

• A)does not have the right to charge Jacob's account for $500.
• B)only has the right to charge Jacob's account for $250.
• C)has the right to charge Jacob's account for $500.
• D)can be held liable for breach of contract.

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Definitions:

Market Value

The current value at which an asset or company can be bought or sold on the open market.

Financial Position

A company's monetary resources and obligations at a given point in time, reflected in its balance sheet.

Net Working Capital

The gap between a firm's existing assets and its immediate liabilities, showing the company's short-term financial stability.

Accounts Receivable

Financial dues customers hold with a company for the provision of goods or services, awaiting recompense.