Wanda Makes a Note Payable to Henry in Return for Henry's

question 34

Multiple Choice

Wanda makes a note payable to Henry in return for Henry's car.Henry negotiates the note to his cousin,Sharon,who accidentally drops it on the floor where it is swept into the garbage.What effect?

• A) The note is canceled.
• B) The note is ineffective.
• C) The obligation is discharged.
• D) The obligation is not affected.

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Definitions:

Factory Overhead

Indirect costs related to manufacturing, including utilities, depreciation of equipment, and salaries of supervisors.

Finished Goods

Goods that are fully manufactured and prepared for sale to consumers.

Cost of Goods Sold

The total direct costs attributable to the production of goods sold in a company.

Accounts Payable

The amount a company owes to suppliers or vendors for goods or services received that haven't yet been paid for.