A Check That Is Made Out to "Cash" and Signed

question 37

Multiple Choice

A check that is made out to "Cash" and signed by the writer is

• A) a void instrument.
• B) an order instrument.
• C) a revocable instrument.
• D) a bearer instrument.

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Definitions:

Net Realizable Value

The estimated selling price in the regular course of business minus any costs of completion, disposal, and transportation.

Inventory

The goods and materials a business holds for the purpose of sale or production.

Remeasured

The process of adjusting the value of an asset or liability to reflect its current market value or to correct any errors in initial measurement.

Depreciation Expense

The portion of the total cost of a tangible asset that is charged as an expense to the income statement over its useful life, reflecting wear and tear.