Sid Signs a Promissory Note Payable to Tony on Which

question 82

Multiple Choice

Sid signs a promissory note payable to Tony on which Sid conspicuously notes that it is "not negotiable" and gives the note to Toney. This instru?ment is

• A) negotiable.
• B) nonnegotiable, because it includes the notation "not negotiable."
• C) nonnegotiable, because it is a promissory note.
• D) nonnegotiable, because it was given to Bob.

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Definitions:

Collection Period

The average number of days it takes a company to collect payments owed by its customers for sales made on credit.

Credit Sales

Transactions where goods or services are provided to a customer with the agreement that payment will be made at a future date.

Non-Growth Firm

A business that does not expect to increase its revenue or expand its market share significantly over time.

Cash Positions

The amount of cash or cash-equivalents that a company or individual has available at any given time.