If Jay Signs Mila's Name to a Negotiable Instrument Without

question 79

Multiple Choice

If Jay signs Mila's name to a negotiable instrument without Mila's authorization or approval:

• A)the signature is not effective as the signature is of the unauthorized signer.
• B)the signature cannot be ratified later by the person represented.
• C)the signature does not bind the person whose name appears.
• D)Jay is not liable on the check.

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Definitions:

Specific Identification

An inventory costing method where each item of inventory is individually valued and tracked.

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold by a company.

Average Cost Formula

A method used in accounting to calculate the cost of goods sold and ending inventory by averaging the cost of goods available for sale.

Perpetual Inventory System

An inventory management system that continuously updates the quantity and value of inventory on hand after each transaction.