Fact Pattern 27-1AMike loses his National Bank access card. He realizes his loss the next day but waits a week to call National. Meanwhile, Opal finds and uses Mike's card to withdraw $3,000 from Mike's account.Refer to Fact Pattern 27-1A. When Mike receives his National statement, he demands that the bank investigate the matter and recredit his account. The bank
A. has no duty to investigate.
B. must investigate and, if the dispute is not resolved within ten days, recredit Mike's account (at least until the dispute is resolved).
C. must investigate and immediately recredit Mike's account (at least until the dispute is resolved).
D. must investigate but need not recredit Mike's account.
Answer: B
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Select the correct statement regarding the selling and administrative (S&A) expense budget.
A. The S&A budget is prepared before the cash budget. B. The S&A budget is prepared before the pro forma income statement. C. The S&A budget is prepared after the sales budget. D. All of the answers are correct.
If a company uses LIFO for annual reporting purposes, it must also use it for interim reporting. This enables external users to accurately compare financial statements
Indicate whether the statement is true or false
Totals on the debit and credit sides to determine the balance of an account are known as
a. footings; b. credits; c. debits; d. rulings; e. revenues
The periodicity assumption recognizes that
A) the company may continue indefinitely. B) all financial statements should cover a fiscal year. C) some items reported in net income are estimates. D) the value of an asset may vary from month to month.