Laura Is in Possession of a Check Which Contains the Following

question 46

Multiple Choice

Laura is in possession of a check which contains the following indorsement, "Sam Smith, without recourse, for collection only." The indorsement would be classified as:

• A)blank, qualified, and restrictive.
• B)blank, unqualified, and unrestrictive.
• C)special, unqualified, and restrictive.
• D)special, qualified, and unrestrictive.

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Definitions:

Note Accepted

A written promise to pay a specified amount of money, known as a promissory note, which has been accepted or endorsed.

Accrued Interest

Interest that has been incurred but not yet paid, typically relating to bonds or loans, calculated from the last payment date up to the current date.

Note Payable

A liability in written form that promises to pay a specified amount of money at a future date.

Interest Expense

The cost incurred by an entity for borrowed funds; interest payments made on debts.