If a Drawer Is Negligent and Contributes to the Forgery

question 41

Multiple Choice

If a drawer is negligent and contributes to the forgery or alteration of a check,_____.

• A) the bank can charge the drawer for the amount
• B) the bank is liable to the drawer for the amount
• C) the check is not payable from the customer's account
• D) the bank must pay the instrument out of its own funds

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Definitions:

Inventory

Refers to the goods and materials a business holds for the purpose of resale or production.

Cost Of Goods Sold

Costs that are directly related to the production of goods a company sells, encompassing expenses for labor and materials.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, highlighting the profitability of a company.

Sales

This refers to the revenue a company generates from selling goods or services in the normal course of its business.