Isabel Transfers a Note, for Consideration, to Juliet by Blank

question 21

Multiple Choice

Isabel transfers a note, for consideration, to Juliet by blank indorsement and delivery. Juliet transfers the note to Kip, who takes it in good faith. In this situation, Isabel warrants to Kip that​

• A) ​he is entitled to enforce the note.
• B) ​the note has been fully paid.
• C) ​any defense to payment on the note can be assered against him.
• D) ​none of the choices.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs as product costs, treating fixed manufacturing overhead as an expense of the period in which it is incurred.

Unit Product Cost

The total cost associated with producing a single unit of a product, including direct materials, direct labor, and allocated overhead.

Absorption Costing

A method of inventory costing that includes all manufacturing costs, both variable and fixed, in the cost of a finished product.

Variable Costing

An economic recording tactic that involves only variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in determining product costs.