19. Salmond signs a note for the purpose of lending credit toJohn. Salmond also...

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Accounting

19. Salmond signs a note for the purpose of lending credit toJohn. Salmond also makes his father Richard sign the note becauseof his shaky financial condition. This indicates that Richard hassigned the note in the capacity of a(n):
A. drawee.
B. accommodation maker.
C. drawee.
D. indorser.
20. Jack received a check as payment for the work he did. Heindorsed the check "without recourse." This has what legaleffect?
A. The drawer of the check is discharged from primary liabilityon the check.
B. Jack is discharged from secondary liability on the check.
C. The drawer of the check is discharged from secondaryliability on the check.
D. Jack is discharged from primary liability on the check.
21. Flanigan is the Treasurer of ABC Corp. As such, he isauthorized to sign checks for the
corporation. A supplier bills ABC for a legitimate obligation.Flanigan made out a check to the supplier and signed it "ABC Corp.,by Flanigan, Treasurer". Who is liable on this check?
A. ABC only.
B. Flanigan only.
C. ABC and Flanigan.
D. Neither ABC nor Flanigan.

Answer & Explanation Solved by verified expert

3.5 Ratings (567 Votes)

Since multiple questions have been posted I have answered the first one Question 19 Accommodation Maker which is Option B Explanation Accommodation maker is a person who signs the note in the See Answer

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Transcribed Image Text

In: Accounting19. Salmond signs a note for the purpose of lending credit toJohn. Salmond also makes...19. Salmond signs a note for the purpose of lending credit toJohn. Salmond also makes his father Richard sign the note becauseof his shaky financial condition. This indicates that Richard hassigned the note in the capacity of a(n):A. drawee.B. accommodation maker.C. drawee.D. indorser.20. Jack received a check as payment for the work he did. Heindorsed the check "without recourse." This has what legaleffect?A. The drawer of the check is discharged from primary liabilityon the check.B. Jack is discharged from secondary liability on the check.C. The drawer of the check is discharged from secondaryliability on the check.D. Jack is discharged from primary liability on the check.21. Flanigan is the Treasurer of ABC Corp. As such, he isauthorized to sign checks for thecorporation. A supplier bills ABC for a legitimate obligation.Flanigan made out a check to the supplier and signed it "ABC Corp.,by Flanigan, Treasurer". Who is liable on this check?A. ABC only.B. Flanigan only.C. ABC and Flanigan.D. Neither ABC nor Flanigan.