Jill,in Good Faith and for Value,gets from Kit a Check

question 27

Multiple Choice

Jill,in good faith and for value,gets from Kit a check "payable to the order of bearer." Jill does not know that Kit stole the check.Jill is

• A)an HDC.
• B)not an HDC,because Kit did not acquire the check for value.
• C)not an HDC,because Kit did not acquire the check in good faith.
• D)not an HDC,because the check is a bearer instrument.

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company’s financial condition at a specific moment in time, showing assets, liabilities, and shareholders' equity.

Direct Method

A cost allocation method that assigns all costs directly to cost objects without going through intermediate cost pools.

Prepaid Expense

Payments made in advance for goods or services that will be received in the future.

Direct Method

A method for preparing a cash flow statement where cash receipts and payments are reported directly, without using adjustments for non-cash items.