Due Negotiation Is

question 26

Multiple Choice

Due negotiation is:

• A) an encumbrance upon property to secure payment.
• B) a claim allowed to one who furnishes labor, services, or materials to improve property.
• C) a loan or cash advance secured by commodities, bills of lading, or warehouse receipts.
• D) the transfer of commercial paper to a legitimate transferee, usually by indorsement.
• E) a written document for items warehoused, serving as evidence of title to the stored goods.

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Definitions:

Place and Condition

Terms used to refer to the physical location and state of goods in a transaction, affecting their valuation and delivery responsibilities.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of a company in managing its production and labor costs.

Inventory Valuation

A method used to calculate the cost of goods sold and the end inventory balance, involving techniques such as FIFO, LIFO, and weighted average cost.

Consignor

A person or company that sends goods to a consignee to be sold or returned, retaining ownership until sale.