The Words "Without Recourse" on an Indorsement Means the Indorser

question 5

Multiple Choice

The words "without recourse" on an indorsement means the indorser is:

• A) liable personally but not other parties.
• B) not liable for any problems associated with the instrument.
• C) not liable if the instrument is dishonored.
• D) liable for only up to fifty per cent of the loss.

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Definitions:

Deposits In Transit

Funds that have been deposited by a company but not yet recorded by its bank, leading to discrepancies in bank reconciliation.

Outstanding Checks

Checks that have been written and recorded in the payer’s ledger but have not yet been cashed or cleared by the bank.

General Ledger

A comprehensive accounting record of all transactions affecting a company, consolidated into debit and credit accounts.

Bank Statement

A monthly or quarterly document provided by a bank detailing all transactions in an account, including deposits, withdrawals, fees, and interest earned.