Which of the Following Is True of an Allonge

question 3

Multiple Choice

Which of the following is true of an allonge?

• A) It must contain the name of the payee to be valid.
• B) It must be accepted by the payee to be valid.
• C) It must be affixed to the indorsement.
• D) It must be provided only on demand.

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Definitions:

Acquired Net Assets

The total assets purchased from a company during an acquisition minus the liabilities assumed in the process.

Equipment Account

An account on the balance sheet where the cost of purchasing equipment is recorded and progressively depreciated over time.

Specific Identification

An inventory costing method that tracks the actual cost of each individual item in inventory and assigns this cost to the goods sold.

FIFO Assumption

The First-In, First-Out method is an accounting assumption used to manage inventory and cost of goods sold, assuming the first items placed into inventory are sold first.