Assuming the Bank Is Not Negligent,in the Case of Multiple

question 42

Multiple Choice

Assuming the bank is not negligent,in the case of multiple forgeries by the same wrongdoer,what is the effect of a customer's failure to notify the bank of the first forgery in regard to subsequent forgeries?

• A)The customer may recover on a subsequent forgery if it is reported to the bank within 15 days after the statement showing the subsequent forgery is received by the customer.
• B)There is no effect because each forgery stands on its own.
• C)The customer is barred from recovering on the subsequent forgeries.
• D)The customer may recover on a subsequent forgery if it is reported to the bank within 10 days after the statement showing the subsequent forgery is received by the customer.
• E)The customer may recover on a subsequent forgery if it is reported to the bank within 5 days after the statement showing the subsequent forgery is received by the customer.

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Definitions:

Machine-Hours

A measure of the amount of time machines are operated during the production process, used for allocating costs or measuring productivity.

Markup

The additional sum included in the purchase price of products to account for overhead expenses and profit.

Variable Manufacturing Overhead

Expenses that vary with production volume, such as utilities and materials.

Job Cost

The total expense calculated for a specific job or project, including materials, labor, and overhead.