A Nonnegotiable Instrument's Terms Are Not Enforceable

question 46

True/False

A nonnegotiable instrument's terms are not enforceable.

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Definitions:

Journal Entry

A recording of a transaction in an accounting journal that notes the debits and credits affecting the accounts involved.

GASB Statement No. 87

A statement issued by the Governmental Accounting Standards Board establishing guidelines for reporting lease transactions in governmental financial statements.

Financing Leases

Long-term lease agreements where the lessee assumes many of the economic risks and rewards of ownership.

Lease Liability

A financial obligation representing future lease payments owed by a lessee under a lease agreement.