Use the fact situation below to answer the questions that follow. John owes Edward a sum of money and gives Edward a cheque made out to Edward for the amount he owes.Edward also owes a sum of money to Albert,and on receiving the cheque from John,Edward signs his name only on the back of the cheque.
When Edward delivers the cheque to Albert,the cheque becomes
A)a bearer cheque.
B)an assignment cheque.
C)a promissory note.
D)an endorsement cheque.
E)all of the above

Question

Quizplus · Accepted Answer

When Edward signs his name on the back of the cheque without specifying a payee, it becomes a bearer cheque, meaning it can be cashed or deposited by anyone who holds it.

Use the Fact Situation Below to Answer the Questions That