Which of the Following Is True Regarding the Instrument Signed

question 4

Multiple Choice

Which of the following is true regarding the instrument signed by Helen promising to pay William a 10% commission if he sold her car?

• A) The instrument is negotiable.
• B) The instrument is not negotiable only for the reason that it is based on a condition.
• C) The instrument is not negotiable only for the reason that Helen is not a merchant.
• D) The instrument is not negotiable only for the reason that it is not for a sum certain.
• E) The instrument is not negotiable because it is based on a condition and also because it is not for a sum certain.

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Definitions:

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions, changes in working capital, and items of income or expense to determine net cash provided by operating activities.

Fixed Assets

Long-term tangible assets used in the operation of a business that are not expected to be converted into cash in the coming year.

Statement of Cash Flows

A financial document that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Operating Activities

Activities related to the core business operations of a company, such as selling goods and services.