Scott Presents an Instrument That States "Pay to the Order

question 36

Multiple Choice

Scott presents an instrument that states "pay to the order of Scott" to Town Bank for payment.This instrument is the most common type of negotiable instrument,which is

• A)a certificate of deposit.
• B)a check.
• C)a note.
• D)a trade acceptance.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements in the U.S.

Fair Value

The price at which an asset would be exchanged between knowledgeable, willing parties in an arm's length transaction.

Full IFRS

The complete set of International Financial Reporting Standards that are globally accepted guidelines for preparing financial statements.

Private Company

A business entity owned by private individuals or entities and not traded publicly on the stock exchange, often characterized by closely held ownership.