If a Person Has Been Negligent in Signing a Negotiable

question 32

True/False

If a person has been negligent in signing a negotiable instrument,she may use the lack of authorization as a reason for not paying a person who in good faith pays for it.

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Definitions:

Direct Write Off Method

An accounting practice where uncollectable accounts receivable are directly removed from the books when deemed uncollectible.

Direct Write-off Method

An accounting practice where uncollectible accounts receivable are directly written off against income at the time they are deemed unrecoverable.

General Journal

The general journal is an accounting ledger in which all types of transactions are initially recorded before they are posted to specific accounts in the general ledger.

Direct Write Off Method

An accounting method where uncollectible accounts receivable are written off directly against income at the time they are deemed uncollectible.