Which of the Following Is an Accurate Description of Wrongful

question 10

Multiple Choice

Which of the following is an accurate description of wrongful dishonor of a check?

• A) A bank refusing to honor a properly payable check when there are sufficient funds in the drawer's account.
• B) A bank refusing to honor a certified check when it is presented for payment more than a year from its date of issue.
• C) A bank refusing to honor a check which has been outstanding for only a few days more than six months from the date of issue.
• D) A bank refusing to honor an ordinary check when it believes that the payee has altered the amount on the check.

---

Definitions:

Articles of Partnership

A document that formalizes an agreement between parties to enter into a business partnership, outlining the rights, responsibilities, and capital contributions of each partner.

Profit and Loss Ratio

Typically refers to the profit margin, which measures the efficiency of a company in generating profits from its operations, calculated as net income divided by revenue.

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, preparing the books for the next period.

Capital Balances

The amounts of money that the owners of a company have contributed to it or have accumulated over time.