The Transfer of an Instrument

question 41

Multiple Choice

The transfer of an instrument:

• A)vests in the transferee any right of the transferor,to enforce the instrument.
• B)bars the transferee from attaining the rights of the transferor.
• C)vests in the payor any right of the transferor,to enforce the instrument.
• D)bars the transferor to pass on his rights to the transferee.

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Definitions:

Accounting Period

A specific time period for which financial statements are prepared, such as a month, quarter, or year.

First-In, First-Out

Another explanation: An accounting principle for valuing inventory where older stock is sold or used first before newer inventory.

In Process

Relating to materials or products that are in the course of being manufactured but are not yet completed.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed units.