A Holder in Due Course Does Not Take Free of the ________,Which

question 14

Multiple Choice

A holder in due course does not take free of the ________,which go to the validity of the instrument or of claims that develop after he becomes a holder.

• A)personal defenses
• B)relative defenses
• C)procedural defenses
• D)real defenses

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Definitions:

Reasonable Assurance

An acceptable level of certainty or confidence in the accuracy of financial statements, provided by internal controls.

Petty Cash Fund

A small amount of cash on hand used for covering minor or incidental expenses in a business.

Cash Short

A situation where the actual amount of cash on hand is less than the recorded amount in the accounting records.

Journal Entry

An accounting record of a business transaction, indicating the financial effects on the company's accounts.