If the Drawer Is Negligent and Contributes to the Forgery

question 9

Multiple Choice

If the drawer is negligent and contributes to the forgery or alteration of a check:

• A)the bank can charge the drawer for the amount as the drawer's negligence contributed to the forgery.
• B)the bank is liable to the drawer for the amount.
• C)the check is not payable from the customer's account because the bank is not following the instructions of the depositor.
• D)the bank must pay the instrument out of its own funds.

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Definitions:

Cost Drivers

Factors that cause a change in the cost of an activity, used in activity-based costing to allocate costs accurately.

Revenue Variances

The difference between actual revenue and budgeted or projected revenue.

Spending Variances

The difference between actual spending and budgeted or planned spending in various categories.

Cost Drivers

Factors that cause changes in the cost of an activity or process, which are used to allocate costs based on actual usage or consumption.