Which of the Following Is the Most Likely Result If

question 12

Multiple Choice

Which of the following is the most likely result if an agent admits to the principal that a check for the principal was forged by the agent and placed into the agent's bank account, but the principal does nothing until two months later after the agent leaves town with the funds?

• A) Because the checks were forged, the principal can receive reimbursement of the funds from any maker involved or any bank that cashed the checks.
• B) The principal can receive reimbursement from makers of the checks only.
• C) The principal can receive reimbursement from any bank that cashed the checks only.
• D) It is likely that it will be determined that the principal ratified the signatures and that the principal cannot recover from either makers or banks that cashed the checks.
• E) The principal can recover from either the makers or any banks who cashed the checks only if it can be shown that the agent cannot be located for criminal prosecution.

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Definitions:

Theoretical Difference

Refers to the conceptual distinctions between ideas, methods, or phenomena.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debt over a specific period.

Present Value

The present-day evaluation of a future financial amount or cash flow streams, using a predetermined rate of return.

Actuarial Information

Data used by actuaries to calculate and assess risks, premiums, liabilities, and retirement benefits, based on statistical and mathematical models.