A Primary Function of a Negotiable Instrument Is That It

question 88

Multiple Choice

A primary function of a negotiable instrument is that it acts as a substitute for ________.

• A) money
• B) goods sold
• C) services rendered
• D) the assets held by the drawer

---

Definitions:

Buildings

Fixed assets that refer to structures used for business operations, such as offices, factories, and warehouses, represented on the balance sheet and subject to depreciation.

Land

A fixed asset representing the ownership of physical real estate or ground, not depreciated over time in accounting practices.

Machinery and Equipment

These are tangible assets used in the operations of a business, often involved in the manufacturing, production, or service delivery processes.

Land Improvements

Enhancements made to a parcel of land to increase its value or usability, such as landscaping, fencing, and installation of utilities, which are usually depreciable over their useful life.