Which of the Following Is a Warranty of the Transferor

question 43

Multiple Choice

Which of the following is a warranty of the transferor?

• A) Transferor has no knowledge of any insolvency proceedings.
• B) Transferor warrants that all signatures are authentic and authorized.
• C) Transferor warrants that he is entitled to enforce the instrument.
• D) All of these are warranties of the transferor.

---

Definitions:

Financial Statement

Reports that summarize a company's financial performance, status, and cash flows over a specified period.

Permanent/Temporary

A classification that distinguishes between actions or objects that are intended to last indefinitely (permanent) and those expected to change or conclude after a certain period (temporary).

Normal Balance

The side of the accounting equation (debit or credit) where increases in the account are recorded.

Financial Statement

A written report which quantitatively describes the financial health of a company, including balance sheet, income statement, and cash flow statement.