If an Issuer Forgets to Write the Date on a Check,what

question 1

Multiple Choice

If an issuer forgets to write the date on a check,what is the effect?

• A)The payee may write in the date consistent with the intent of the issuer and may transfer the check to a holder in due course.
• B)The check is no good,cannot be completed by anyone,and should be destroyed.
• C)The payee may write in the date consistent with the intent of the issuer,but must put a notation on the check to the effect that it was altered.
• D)The check is good only if the payee can get in touch with the issuer and have the issuer fill in the appropriate date.
• E)The payee may write in the date consistent with the intent of the issuer,but may not transfer the check to a holder in due course.

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Definitions:

Tax Purposes

Refers to the reasons or motivations behind actions taken or strategies employed to minimize tax liability or comply with tax laws.

Tax-shield Approach

A method to reduce taxable income through allowable deductions such as interest expenses, resulting in lower taxes.

Operating Cash Flow

The cash generated from the normal operations of a business, reflecting how well it generates cash to fund its operating expenses and working capital.

Noncash Deductions

Expenses that can reduce taxable income but don't involve an actual outlay of cash during the deducting period, such as depreciation.