Purchases of Fixed Assets Is a Sign Of

question 26

Multiple Choice

Purchases of fixed assets is a sign of:

• A) a struggling company.
• B) reinvestment in the company.
• C) a shortage of cash.
• D) a decrease in inventory.

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Definitions:

Dishonored

Refers to a failure in fulfilling an obligation, such as a check not being paid because of insufficient funds.

Draft

A preliminary version of a document or plan, subject to revisions and improvements.

Blank Indorsement

An indorsement made by a signature alone, with no particular indorsee, written on a negotiable instrument.

Warranties by Indorsers

Guarantees made by indorsers about the validity and enforceability of negotiable instruments.