An Accommodation Party Who Signs an Instrument Guaranteeing Payment Is

question 111

Multiple Choice

An accommodation party who signs an instrument guaranteeing payment is ________ liable on the instrument.

• A) primarily
• B) secondarily
• C) conditionally
• D) never
• E) exclusively

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Definitions:

LIFO Method

The "Last In, First Out" inventory valuation method, where the most recently produced items are recorded as sold first.

Inventory

The raw materials, work-in-progress products, and finished goods considered to be the portion of a business's assets that are ready or will be ready for sale.

FIFO Method

The "first-in, first-out" inventory costing method, where the costs of the earliest goods purchased or produced are the first to be expensed.

Periodic System

An inventory system in which updates to inventory levels are made on a periodic basis rather than continuously.