Signature Liability on a Negotiable Instrument Is Also Known As

question 100

Multiple Choice

Signature liability on a negotiable instrument is also known as:

• A) contract liability.
• B) agent liability.
• C) warranty liability.
• D) secondary liability.
• E) shelter liability.

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Definitions:

Adjustment

An entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Percent of Sales Method

A financial forecasting tool used to estimate certain balance sheet and income statement accounts based on a projected sales figure.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and are written off as a bad debt expense.

Credit Sales

Sales where the customer is allowed to pay for the product or service at a later date, extending credit.