Call, an Employee of Delite Dairy Company, Forges the Signa?ture

question 59

Multiple Choice

Call, an employee of Delite Dairy Company, forges the signa?ture of Elin, Delite's president, on a Delite check and cashes it at First Federal Bank. Elin would ratify Call's actions by

• A) asking First Federal to prosecute Call for forgery.
• B) discharging Call from Delite 's employment.
• C) entering into a repayment agreement with Call.
• D) filing criminal charges against Call herself.

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Definitions:

Average Accounting Rate of Return

A financial ratio that measures the expected return on an investment based on its net income and initial cost.

Straight-Line Depreciation

An arrangement for allocating the cost of a tangible asset over its duration of usefulness in identical annual segments.

Discount Rate

The interest rate charged to commercial banks and other depository institutions by the central bank for loans received from the central bank's discount window; it is also used in discounted cash flow analysis to determine the present value of future cash flows.

Payback Period

The duration required for an investment to recoup its initial outlay in terms of profits or savings.