Which of the Following Is Not a Requirement to Be

question 63

Multiple Choice

Which of the following is not a requirement to be a holder in due course?

• A)The holder must take the instrument for value.
• B)The holder must take the instrument in good faith.
• C)The holder must ensure through all reasonable means that the instrument has not been altered.
• D)The holder must take the instrument without notice of any claim of a property or possessory interest in it.

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Definitions:

Conversion Costs

Conversion costs refer to the sum of direct labor and manufacturing overhead costs that are incurred to convert raw materials into finished goods.

Material Costs

The cost of raw materials used in the production of goods.

Equivalent Units

A method used in cost accounting to allocate costs to partially completed goods, calculated as the number of complete units that could have been produced with the amount of work done.

Conversion Costs

refer to the combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.