Fact Pattern 18-1

question 65

Multiple Choice

Fact Pattern 18-1
Prime Irrigation Systems,Inc. ,signs a check payable to Qwest Landscape Design,Inc. ,drawn on Prime's account at Riverton Bank and dated June 1.Qwest in?dorses the check to Serene Lawn Care Corporation.
-Refer to Fact Pattern 18-1.To hold Qwest secondarily liable,Serene must pre?sent the check for payment within

• A)one year of its issue.
• B)six months of its date.
• C)thirty days of its date.
• D)thirty days of its indorsement.

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Definitions:

Financial Position

A snapshot of the resources, obligations, and net worth of an entity at a specific point in time, showing its financial health and stability.

Comprehensive Income

The total change in equity for a business that comes from non-owner sources during a specific period, including all unrealized gains and losses.

Statement of Financial Position

A financial document showing a company's assets, liabilities, and equity at a specific point in time, also known as a balance sheet.

Statement of Comprehensive Income

A financial statement that includes all changes in equity during a period except for those resulting from investments by and distributions to shareholders.