Which of the Following Is NOT a Requirement for a Draft

question 45

Multiple Choice

Which of the following is NOT a requirement for a draft to become a negotiable instrument?

• A) It must be payable to order or to bearer.
• B) It must be payable on demand or at a fixed or determinable future date.
• C) It must be in writing and signed by the maker or drawer.
• D) All of the above.

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Definitions:

Recoverable Amount

The higher value between an asset's fair value minus costs of disposal and its value in use.

Carrying Amount

The amount at which an asset or liability is recognized on the balance sheet after deducting any accumulated depreciation, amortization, or impairment.

Fair Value

An estimate of the price at which an asset or liability would be traded between knowledgeable, willing parties in an arm's length transaction.

Costs To Sell

The direct costs attributable to the disposition of an asset, excluding finance costs and income taxes.