Most Large Certificates of Deposit Are

question 302

Multiple Choice

Most large certificates of deposit are:

• A) not negotiable because they are bank-made debts
• B) not negotiable because Article 3 does not allow them to be negotiable
• C) not negotiable because the payee would lose control
• D) not negotiable because the maker would lose control
• E) negotiable

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Definitions:

Property, Plant, Equipment

Long-term tangible assets used in the operation of a business that are expected to provide benefits for more than one year.

Intangible Assets

Non-physical assets owned by a business, such as patents, copyrights, trademarks, and goodwill, that provide economic benefits.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted into cash in the short term, such as buildings, machinery, and vehicles.

Fixed Asset Account

An account on the balance sheet that reports the cost and accumulated depreciation of long-term tangible assets used in the operations of a business.