On the back of a check "payable to Huan," Huan signs her name and negotiates the item to Ito. To avoid liability on the item if it is laterdishonored, Ito shouldO a. indorse the check "without recourse."Ob.write, above Huan's signature, "Pay to Ito."c. immediately indorse the check in blank.Od. make a copy of the check and place it in a secure location.

In finance, "without recourse" limits the liability of the endorser who negotiates the check to…

Answered: On the back of a check "payable to…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 2SEQ

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The vice president of finance asks the accounts payable (AP) clerk to write a check in the name of the president for $10,000. He and the president will sign the check (two signatures needed on a check of this size). He further instructs the AP clerk not to disclose this check to her immediate supervisor. What should the AP clerk do? Should she prepare the check? Should she inform her immediate supervisor? Discuss with internal controls in mind.
Use legal basis in answering M signed a blank check and put it in his office table. B stole it and filled up the amount and wrote his name as payee. B, negotiated the check to C who paid value therefor in good faith. C, presents it for payment to the drawee bank, but the bank refused to pay due to the stop payment order previously given by A. Can C, collect from M the amount of the check? Can C run after B?
A check was issued by L. The name of the payee written on the face of the check is “Cardo Dalisay from Ang Probinsyano”. What kind of instrument is this? A. Order instrument B. Bearer instrument C. Order and bearer instrument D. Trust Bill
1. Assuming that B issues the following checks, when may she be chargeable for violation of the special law on anti-bouncing checks? A. B issues an ante-dated check for P10,000 as a gift, without the knowledge that she does not have sufficient funds with drawee bank. B. B issues a check for P15,000 for a second-hand laptop believing to have P7,500 in credit with the drawee bank. C. B issues a check for P20,000 as a donation to the church, which was dishonored by the drawee bank pursuant to a garnishment ordered by a court. D. B issues a check for P10,000 as payment for debt and it was dishonored by the drawee bank upon its presentment 120 days from the check's date. 2. Assuming that B is an insider and he wants to sell or buy a security of an issuer, WHAT ARE HIS DEFENSES TO PROVE THAT HE IS NOT INVOLVED IN “INSIDER TRADING”? A. A purchase or sale of a security of the issuer made by an insider, his/her spouse, or relatives by affinity or consanguinity within…
Debbie Dean issued a check to Betty Brown payable to the order of Cathy Cain and Betty Brown. Betty indorsed the check, “Payable to Elizabeth East, (signed) Betty Brown.” What rights, if any, does Elizabeth acquire in the check?
Which of the following statements about a forged drawer's signature on a check is true? a.) A payor bank that pays on a forged signature of the drawer can charge the drawer's account b.) A payor bank paying on the forged signature of an endorser does not need to return the instrument to the party whose name was forged c.) In the event of the forged signature of the drawer, the bank can collect from the party receiving the payment unless the party is the forger or the party dealt with the forger negligently d.) A payor bank that pays on a forged endorsement can collect from the person to whom payment was made
A) If a cheque is converted from bearer to order and from order to bearer does it amount to material alteration? Does it require authentication? B) A cheque of Rs 20000 which had been crossed originally carries below the crossing the words “crossing cancelled” and signed by the drawer and is presented for cash payment on the counter. How would you deal with such situation?
Assume that Oman Formaldehyde Chemical Company LLC sold the chemical of OMR 540 to the customer and received the check to the same amount. The cheque deposited in the bank immediately but the cheque received from the customer was misreported in the cash receipts journal as OMR 450. Therefore while preparing the Bank Reconciliation statement, what adjustment the accountant will do? Choose the correct answer from the following given options. a. Add OMR 540 to the cash book balance b. Deduct OMR 90 from the cash book balance c. Deduct OMR 540 from the cash book balance d. Add OMR 90 to the cash book balance Clear my choice
Which of the following is true of an endorsement? a.It is made only when the receipts are more than $500. b.It is used only when payment is made to an individual. c.It transfers title to the money. d.It authorizes receipt of the check.
Check shall produce the effect of payment:I. When the check has been encashedII. When through the fault of the creditor the check has been impairedIII. When a check has been cleared and credited to creditor’s accountIV. When the creditor accepts the check as payment
Which of the following statements is correct? a.Outstanding checks are checks not yet issued by the depositor to the payee and not yet reflected on the bank statement. b.Certified checks should be deducted from the total outstanding checks c.If the check contains a conflict between amount in words and amount in figures, it is usually accept by the bank provided, the depositor promises to correct it later within the day. d.In DAIF, the depositor has, on its face, sufficient funds in his account, although it is not available yet at the time the check was drawn, whereas in DAUD, the depositor lacks sufficient funds in his account to pay the check.
Explain clearly how would you deal with the cheque if the cheque has been lost and Mr. James asks if your branch will stop payment of the cheque if it is presented. He leaves his telephone number in case of need. The cheque is discovered in the days clearing. It is properly drawn in favor of Mr. Ward James and is endorsed “Ward James” on the back.

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