Which of the Following Is a Warranty of the Transferor

question 2

Multiple Choice

Which of the following is a warranty of the transferor?

• A)Transferor has no knowledge of any insolvency proceedings with respect to the maker, acceptor, or drawer of an unaccepted instrument.
• B)Transferor warrants that all signatures are authentic and authorized.
• C)Transferor warrants that he is entitled to enforce the instrument.
• D)All of the above are warranties of the transferor.

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Definitions:

Accounts Receivable

Unpaid amounts by customers to a company for goods or services already rendered.

Cash Receipts Journal

A dedicated journal used to record all cash inflows or receipts of a business.

Sales of Merchandise

The total revenue generated from selling goods that are intended for resale as part of a company's normal business operations.

Purchases Journal

A specialized accounting journal used to record all purchases of merchandise, supplies, or other goods on credit.