When a Notes Receivable Is Discounted, the Business That Endorses

question 80

Multiple Choice

When a notes receivable is discounted, the business that endorses the note becomes potentially liable to the bank. This liability is called a

• A) potential liability.
• B) dependent liability.
• C) conditional liability.
• D) contingent liability.

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Definitions:

IQs

Short for Intelligence Quotients, a measure of a person's cognitive abilities in relation to their age group, expressed as a numerical score.

Premises

Premises refer to statements or ideas assumed to be true and used as the basis for constructing an argument or reasoning.

Conclusions

The end or finish of an event, process, or text, often summarizing the main points or findings.

Convergent Thinking

A cognitive process in which a person has the goal of finding a single, correct answer to a problem, as opposed to divergent thinking which involves generating multiple solutions.