What Is the Effect of Marking a Cheque 'Not Negotiable

question 49

Multiple Choice

What is the effect of marking a cheque 'not negotiable'?

• A)The payment figure on the cheque cannot be altered.
• B)The cheque must be paid into a bank account
• C)A transferee cannot obtain better title than the transferor.
• D)The cheque becomes non-transferable.

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Definitions:

Borrowed Money

Funds that an individual or organization takes from another party under the condition of returning it back in the future often with interest.

Accounting Communication Process

The system by which financial information is identified, measured, recorded, and communicated to interested parties.

External Auditors

Independent third-party professionals who examine a company's financial statements to ensure accuracy and compliance with accounting standards.

Company's Management

Individuals responsible for overseeing the operations and making decisions within a corporation.