Dru Signs a Check "Pay to the Order of Eppie

question 49

Multiple Choice

Dru signs a check "pay to the order of Eppie" drawn on Dru's account in Bayside Bank.Greta forges Eppie's indorsement.Bayside pays the check.Most likely

• A)Dru will be liable for the amount.
• B)Eppie will have to pay Dru for the amount.
• C)Bayside will have to recredit Dru's account.
• D)the Federal Reserve will reimburse all parties for their costs.

---

Definitions:

Payments

The act of providing money or its equivalent in exchange for goods, services, or to settle debts.

Balance Due

The amount of money owed on an invoice or bill that remains unpaid and is required to settle the account.

Double-Entry Bookkeeping System

An accounting method where each transaction is recorded in two accounts, showing both the source and the destination of funds to ensure accuracy.

Single-Entry System

A method of bookkeeping where each financial transaction is recorded only once, either as an income or an expense, making it less complex but less accurate than double-entry systems.