Governments Disfavor Bearer Instruments Because

question 352

Multiple Choice

Governments disfavor bearer instruments because:

• A) transactions with bearer instruments are not taxable
• B) transactions with bearer instruments are illegal
• C) law enforcement agencies find it difficult to trace money transferred in bearer form
• D) bearer instruments cannot be used to fund political campaigns
• E) transactions involving bearer instruments are not covered by the UCC

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Definitions:

Office Supplies

Items such as pens, paper, and other materials used in an office setting for daily operations.

Merchandise Inventory

Goods that a business intends to sell to customers for a profit.

Days' Sales

An analysis technique used to estimate the average time it takes for a company to collect cash from sales.

Uncollected Ratio

Indicates the proportion of receivables that a company has not yet received payment for, typically represented as a percentage of total receivables.