Which of the Following Is False Regarding the Means by Which

question 84

Multiple Choice

Which of the following is false regarding the means by which an instrument may be cancelled by a person entitled to enforce it?

• A)A party may cancel an instrument by intentionally mutilating the instrument.
• B)Consideration is necessary before a cancellation,a form of contractual agreement,is effective.
• C)A party may cancel an instrument by simply writing "paid" on the instrument.
• D)A party may cancel an instrument by intentionally destroying the instrument.
• E)A party may cancel an instrument by giving the instrument to the obliged party.

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Definitions:

Income Statement

A report detailing a corporation's income, costs, and earnings within a given timeframe.

Book Value

The net value of an asset as recorded on the balance sheet, calculated by original cost minus depreciation.

Gain Or Loss

The financial result that occurs when the selling price of an asset differs from its original purchase price, where a higher selling price results in a gain and a lower selling price results in a loss.

Disposal

The process of getting rid of something, especially by throwing it away or by selling it.