Which of the Following Is True Regarding the Bank Manager's

question 55

Multiple Choice

Which of the following is true regarding the bank manager's statement that the bank was a holder in due course,and that stop-payment orders could not affect the right of a holder in due course to collect?

• A) The bank manager is wrong.
• B) The bank manager is correct only if he can establish that the bank employee who actually paid the check had no knowledge of the stop-payment order.
• C) The bank manager is correct unless Elaine can affirmatively prove that the bank employee who actually paid the check had knowledge of the stop-payment order.
• D) The bank manager is correct unless Elaine can prove fraud in the factum on the part of BIG Jewelry.
• E) The bank manager is correct unless Elaine can prove fraud in the factum on the part of BIG Jewelry and that the bank was aware of the fraud.

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Definitions:

Indirect Method

A technique in financial accounting to prepare the cash flow statement, whereby net income is adjusted for non-cash transactions and changes in working capital.

Sale Of Investments

The process of liquidating investments such as stocks, bonds, or real estate, often to generate cash.

Statement Of Cash Flows

A financial report summarizing the total cash inflows from a company's operational activities and outside investments, alongside the cash outflows for paying off its business operations and investments within a specific timeframe.

Schedule

A plan that lists events, tasks, or activities along with their intended times and dates.