Roald writes a check for $700 to Savannah. Savannah indorses the check in blank and transfers it to Twitchell, who alters the check to read $7,000 and presents it to Union Bank, the drawee, for payment. The bank cashes it. Roald discovers the alteration and files a suit against the bank. Roald can recover
A. $7,000.
B. $6,300.
C. $700.
D. 0.
Answer: B
You might also like to view...
Which of the following describes the environment in internal control?
A) Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate. B) The environment is the "tone at the top" of the business. C) The environment is designed to ensure that the business earns profit. D) A company must identify its risks.
Which of the following is a reason why nations set up import controls?
A) to prevent the imposition of antidumping duties B) to prevent foreign companies from destroying home industries C) to reduce the flow of foreign currency coming into the home country D) to prevent unfriendly nations from obtaining sensitive goods
A due-on-sale clause requires immediate repayment of the loan when the property changes hands
Indicate whether the statement is true or false.
Anything for which managers want a separate measurement of cost is called a ________
A) responsibility center B) cost object C) profit object D) conversion cost