If an Assignment of an Instrument Takes Place, the Assignee

question 24

Multiple Choice

If an assignment of an instrument takes place, the assignee:

• A) has greater rights than the assignor.
• B) has the same rights as the assignor.
• C) is in possession of a negotiable instrument.
• D) is in possession of a nonnegotiable instrument.

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Definitions:

Journal Entry

A record of a business transaction in an accounting system that includes the accounts and amounts to be debited and credited.

Acquisition

The process of acquiring control of another company or business asset, which can involve a purchase, merger, or take-over.

Assets

Resources owned or controlled by a person or company, expected to produce economic value or future benefits.

Cash

Liquid assets held by a firm, used to meet short-term obligations or for transactions; the most basic form of company resources.