In Good Faith and for Value, Joya Gets from Kyle

question 43

Multiple Choice

In good faith and for value, Joya gets from Kyle a negotiable bearer instrument. Joya does not know that Kyle stole the instrument. Joya is

• A)an HDC.
• B)not an HDC, because Kyle did not acquire the instrument for value.
• C)not an HDC, because Kyle did not acquire the instrument in good faith.
• D)not an HDC, because Kyle transferred the instrument without notice.

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Definitions:

Balance Sheet

An account that consolidates the assets, liabilities, and shareholders' equity of a company, reflecting its financial status at a specific time.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made, used to prepare financial statements.

Total Assets

The sum of all assets owned by a company, including both current (short-term) and non-current (long-term) assets, representing the total resources at its disposal.

Income Statement

A document detailing a firm's incomes and expenditures within a certain timeframe, ultimately revealing the net profit or deficit for that interval.