Fact Pattern 17-1 Chuck Is the Maker of a $200,000 Promissory Note Payable

question 2

Multiple Choice

Fact Pattern 17-1
Chuck is the maker of a $200,000 promissory note payable to Investors Corporation. Investors indorses the note to Equity Lenders, which in turn indorses it to Select Holdings LLC, which then indorses it to Global Bank, the present holder.
-Refer to Fact Pattern 17-1.Global Bank properly presents the note to Chuck for payment, but he dishonors it. With timely notice to the proper parties, Global Bank may collect payment on the note from​

• A) ​Investors, Equity Lenders, or Select Holdings.
• B) ​Investors or Equity Lenders only.
• C) ​Select Holdings only.
• D) ​no one.

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Definitions:

Work in Process Inventory

Goods that are in the process of being manufactured but are not yet complete.

Materials Quantity Variance

The contrast between the quantity of materials actually used and the quantity that was projected, with this difference being multiplied by the standard price per unit.

Materials Price Variance

The variance between the real expense of materials utilized in production and the predetermined standard cost of those materials.

Raw Materials Inventory

The stock of basic materials and components that are to be used in the production or manufacturing of goods.