Which of the Following Instruments Would Classify as a Negotiable

question 12

Multiple Choice

Which of the following instruments would classify as a negotiable instrument?

• A) A check that states, "Pay to the order of John Green."
• B) A check payable to "X."
• C) A check payable to "cash."
• D) A blank check.
• E) A $100 bill.

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the owner's claim on the company's resources.

Non-posting Account

An account used in bookkeeping for recording transactions that will not affect the financial statements until a later transaction completes the process.

Purchase Orders Account

This refers to a specific ledger or account setup within an accounting system to track purchase orders issued to suppliers.

Income Statement

A financial statement that summarizes a company's revenues and expenses over a specific period, highlighting the net profit or loss.