Pedro Signs an Instrument That States It Is Being Executed

question 13

Multiple Choice

Pedro signs an instrument that states it is being executed "as per a contract for the sale of a case of apples dated May 1." This instrument is

• A)negotiable.
• B)notnegotiable,because banks cannot easily process commodities.
• C)notnegotiable,because it includes the specific date of a contract.
• D)notnegotiable,because it refers to an express contract.

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Definitions:

Profit Sharing

A compensation scheme where employees receive a portion of the company's profit, in addition to their regular salary.

Capital Balance

The amount of money an owner has invested in a business plus any retained earnings or minus any losses.

Capital Balance

The amount of money that a partner in a business has contributed to the business minus any withdrawals or distributions.

Bonus Method

The bonus method is an accounting approach used in partnership transactions to reflect changes in the capital accounts of the partners when no actual cash is paid out or received.