Which of the Following Is Not Required for an Instrument

question 88

Multiple Choice

Which of the following is not required for an instrument to be considered negotiable?

• A) The instrument must contain an unconditional promise to pay.
• B) The instrument must promise to pay a fixed amount of currency.
• C) The instrument must be payable at any indefinite future time.
• D) The instrument must promise to pay.
• E) The instrument must be signed by the maker or drawer.

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Definitions:

Journal Entry

A record in accounting that documents a transaction in a company's ledger, thereby affecting at least two accounts to keep the accounting equation in balance.

Corning Company

A technology company known for its specialty glasses, ceramics, and related materials and technologies, including the development of Gorilla Glass.

Chart of Accounts

A systematic listing of all ledger account titles and numbers used by a company, showing the classification and arrangement of accounts.

Posting Reference

A notation that guides one from a journal entry to its corresponding ledger account, facilitating audit trails.