B a certified check c a trade acceptance d a

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b. a certified check. c. a trade acceptance. d. a traveler’s check. ANSWER: B PAGE: 545 TYPE: N
NAT: AACSB Reflective AICPA Legal A5. Kip writes a check for $1,000 drawn on Local Bank and presents it to Mira. Mira presents the check for payment to Local Bank, which dishonors it. The party most likely liable to Mira is
NAT: AACSB Reflective AICPA Legal B5. Pat, the manager of Quik Mart, deposits the store’s receipts in its account at Regional Bank. As to the receipts, the relationship between Quik Mart and the bank is
NAT: AACSB Reflective AICPA Legal A6. Thelma signs a check “pay to the order of Uri” drawn on Thelma’s account in Verity Bank. Thelma has $400 in her account but the amount of the check is $500, which the bank pays. This is
a. a dishonored check. b. an overdraft. c. a postdated check. d. a stale check. ANSWER: B PAGE: 547 TYPE: N NAT: AACSB Reflective AICPA Legal B6. Dan writes a check to Emma on his account at First State Bank. The bank dishonors the check even though Dan has sufficient funds in his account. The bank is
NAT: AACSB Reflective AICPA Legal A7. Liu signs a check “pay to the order of Marv” drawn on Liu’s account in National Bank. Liu later orders National not to pay the check, but the bank pays it over Liu’s order. Subsequent checks written on Liu’s account “bounce.” Most likely liable for the costs to Liu is a. any party to whom a subsequent check was written. b. Liu. c. Marv. d. National. ANSWER: C PAGE: 547 TYPE: N
NAT: AACSB Reflective AICPA Legal B7. Dora writes a check for $100 drawn on Eastern Bank and presents it to Fast Cash, Inc., for payment. If the check is not backed by sufficient funds, Dora may be prosecuted for
NAT: AACSB Reflective AICPA Legal Fact Pattern 27-1A (Questions A8 and A9 apply) Echo takes her car to Fix-It, Inc., which repairs the car and bills Echo for $500. Echo writes out a check drawn on Capital Bank, but later, believing that Fix-It did not repair the car properly, issues a stop-payment order. A8. Refer to Fact Pattern 27-1A. Capital Bank pays the check. Capital
d. is liable for Echo’s loss due to the wrongful payment. ANSWER: D PAGE: 548 TYPE: = NAT: AACSB Reflective AICPA Legal
B8. Dhani signs a check “pay to the order of Etan” drawn on Dhani’s account in First State Bank and dates the check “May 1.” Etan presents the check to the bank for payment on December 15. This is

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