When an Instrument Is Indorsed in Blank, It Becomes Payable

question 37

True/False

When an instrument is indorsed in blank, it becomes payable to the bearer and may be transferred by delivery alone.

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Definitions:

Cash

A form of currency that represents immediate purchasing power and liquidity.

Correcting Entry

A journal entry made to amend an error in the accounting records.

Unearned Service Revenue

Liabilities arising when a business receives payment for services that have not yet been performed, recognized as revenue over time as services are provided.

Accounts Receivable

Customer debts to a company for the provision of services or delivery of goods not yet paid for.