Brandy Forges Caleb's Signature on a Check "Payable to the Order

question 15

Multiple Choice

Brandy forges Caleb's signature on a check "payable to the order of Brandy" drawn on Caleb's account in Downtown Bank. Caleb's forged signature is​

• A) ​effective if an innocent third party accepts the check.
• B) ​effective to the degree that it matches Caleb's genuine signature.
• C) ​effective to the extent that Downtown Bank debits Caleb's account.
• D) ​not effective.

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Definitions:

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Net Income

The amount of earnings left over after all expenses and taxes have been deducted from total revenue.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Break-Even Point

The break-even point is the point at which total costs and total revenues are equal, meaning there is no net loss or gain.