Super Company's Agent Tyra Is Authorized to Draw Checks on Super's

question 18

Multiple Choice

Super Company's agent Tyra is authorized to draw checks on Super's account in Unity Bank. The checks are preprinted with Super's name. Tyra writes a check "pay to the order of Vern [signed] Tyra." Vern negotiates the check to Weber, who does not know about the agency relationship. If Weber presents the check for payment and Unity Bank dishonors it, liability extends to

• A) no one.
• B) Super and Tyra.
• C) Super only.
• D) Tyra only.

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Definitions:

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions to calculate net cash from operating activities.

Operating Activities

Transactions related to the primary activities of a business, such as selling goods and services, which are reflected in the cash flow statement.

Financing Adjustments

Changes made to financial statements to account for the costs and effects of financing activities, such as interest expenses and loan payments.

Common Stock

Equity ownership in a corporation, with voting rights and a residual claim on corporate earnings.