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:

S-T Segment

A portion of the electrocardiogram (ECG) reading that represents the period between the ventricular depolarization and repolarization, significant in diagnosing myocardial damage.

T Wave

A component of the ECG that represents the repolarization, or recovery, of the ventricles during heartbeats.

Atrioventricular Valves

Valves located between the atria and ventricles of the heart that prevent the backflow of blood during contraction.

Semilunar Valves

Heart valves located at the exits of the right and left ventricles, preventing backflow of blood into the ventricles after contraction; they include the aortic and pulmonary valves.