2. A check was dishonored due to material alteration. Creditor filed an action against drawee bank for the amount. Is the creditor entitled?
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- How do you account for a bounced check or a dishonored 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 payment18. Which of the following contingencies is usually not accrued in the accounts? a. uninsured risk of property loss by fire or other hazardsb. guarantees of indebtedness of othersc. noncollectibility of receivablesd. agreements to repurchase receivables that have been sold
- Why do you think the loan officer suspected that the accounts had not been adjusted prior to the preparation of the statements?When an uncollectible account is recovered after it has been written off, which of the following accounts will be credited in the process? O Allowance for Doubtful Accounts and Cash O Accounts Receivable and Allowance for Doubtful Accounts O Cash and Account Receivable O Allowance for Doubtful Accounts and Bad Debts ExpenseThe following is punishable under BP Blg. 22: (I) Any person who makes or draws and issued any check to apply on account or for value, knowing at the time of issue that he does not have sufficient funds in or credit with the drawee bank for the payment of such check in full upon its presentment, which check is subsequently dishonored by the drawee bank for insufficiency of funds or credit or would have been dishonored for the same reason had not the drawer, without any valid reason, ordered the bank to stop payment. (II) Any person who, having sufficient funds in or credit with the drawee bank when he makes or draws and issues a check, shall fail to keep sufficient funds or to maintain a credit to cover the full amount of the check if presented within a period of ninety (90) days from the date appearing thereon, for which reason it is dishonored by the drawee bank. Both are true Both are false Only I is true Only II is true
- when a company receives a deposit from a customer to protect itself against nonpayment for future services, the deposit should be classified by the company as: a. revenue b. a liability c. part of the allowance for doubtful accounts d. a deferred credit deducted from accounts receivableWhat is the purpose of the following control procedures (i.e., what threats is it designed to mitigate)? c. Direct deposit of paychecks.A drawer, knowing that he has insufficient credit in the bank, issues a check, which was eventually dishonored by the drawee bank. The drawer may be held liable for: a. Violation of Bouncing Checks Law b. Estafa c. Civilly liable d. All of the above