What Essential Technical Requirement Must Be Present in Order for an Instrument

question 7

Multiple Choice

What essential technical requirement must be present in order for an instrument to become negotiable without investigation as to its validity through reference to circumstances or other documents?

• A) a payee's endorsement
• B) an authorized signature
• C) a drawer's endorsement
• D) an unconditional obligation

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Definitions:

Working Knowledge

A practical understanding or awareness of a subject or skill, sufficient to perform tasks or make decisions related to it.

Accounting Relevance

The importance of financial information in making informed business decisions due to its material impact on evaluating past, present, or future events.

Accounting Information

The data produced through the accounting process, which is used for decision-making, financial analysis, and reporting.

Economic Event

An occurrence with the potential to affect the financial status or performance of an entity, such as a transaction, market fluctuation, or regulatory change.