The Imposter Rule Regarding Negotiable Instruments

question 23

Multiple Choice

The imposter rule regarding negotiable instruments:

• A)was devised to put the responsibility for determining the true identity of the payee on the drawee of a check.
• B)makes the payee's signature valid even though it is a forgery.
• C)does not force the maker to find the wrongdoer.
• D)lays the responsibility of determining the identity of payee on latter holders of an instrument.

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Definitions:

Direct Method

A costing method that assigns service departments' costs directly to production departments without going through multiple allocations.

Administrative Department

A division within a company responsible for overseeing and providing essential support services such as finance, HR, and clerical work.

Employee Hours

The total number of hours worked by all employees within a specific period, often used for productivity analysis and labor costing.

Direct Method

In cost accounting, a technique that allocates service department costs directly to producing departments without considering any services rendered between service departments.