Which of the Following Is an Example of a Negotiable

question 68

Multiple Choice

Which of the following is an example of a negotiable instrument?

• A)Checks,drafts,and promissory notes
• B)Checks but not drafts or promissory notes
• C)Drafts and checks,but not promissory notes
• D)Promissory notes and checks,but not drafts
• E)Promissory notes,but not drafts or checks

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Definitions:

Absorption Costing

A pricing approach that encompasses all production expenses, such as direct materials, direct labor, along with both variable and fixed overhead, in a product's cost.

Variable Costing

An accounting method that only allocates variable costs to inventory, treating fixed costs as period costs that are expensed in the period they are incurred.

Operating Income

The profit realized from a business's operations after subtracting operating expenses from gross profit, indicating the efficiency of core business activities.

Absorption Costing

A costing method where all of the costs associated with manufacturing a product are absorbed by the units produced, including both variable and fixed manufacturing costs.