Which of the Following Instruments Is Negotiable

question 41

Multiple Choice

Which of the following instruments is negotiable?

• A)A note which states,"I promise to pay to the order of Karl Adams $1,000 if he replaces the roof on my garage."
• B)An instrument which provides,"Payment is subject to the terms of a mortgage dated November 20,2009."
• C)A note which contains the statement,"This note is secured by a mortgage dated August 30,2009."
• D)An instrument which reads,"I promise to pay to the order of MyHome Appliance Co.$550 sixty days after the delivery of my new refrigerator."

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Definitions:

Net Purchases

The total amount of purchases made by a business minus returns, allowances, and discounts.

Intraperiod Tax Allocation

The process of apportioning income taxes within a single fiscal period among different sections of a financial statement.

Extraordinary Items

Events and transactions that are distinct from the ordinary activities of a company and have a significant impact on its financial position.

Discontinued Operations

Parts of a company's business that have been sold, disposed of, or otherwise terminated, which are reported separately from continuing operations in financial statements.