Wen Writes an Instrument That States It Is "Payable to X

question 49

Multiple Choice

Wen writes an instrument that states it is "payable to X." The instrument is

• A)negotiable.
• B)nonnegotiable, because it does not state that it is payable to order.
• C)nonnegotiable, because it is payable to a nonexistent person.
• D)nonnegotiable, because it cannot be transferred by indorsement.

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Definitions:

Liquidity

A firm’s cash and marketable securities position, refers to its ability to meet maturing obligations. A liquid asset is any asset that can be quickly sold and converted to cash at its “fair” value. Active markets provide liquidity.

Inventory Turnover Ratio

Sales divided by inventories.

Liquidity Position

A measure of a company or individual's ability to quickly convert assets into cash to meet financial obligations.

Efficiently

The ability to achieve a goal or perform a task with the least waste of time and effort; effectiveness and efficiency combined.