On August 9, Pierce Company Receives a $8,500, 90-Day, 8

question 51

Multiple Choice

On August 9, Pierce Company receives a $8,500, 90-day, 8% note from customer Eric Simms as payment on his account. Compute the maturity date for the note.

• A) October 8
• B) October 7
• C) November 8
• D) November 7
• E) November 6

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Definitions:

Code Requirements

The standards and regulations set forth in legal codes that must be adhered to in specific contexts, such as building or manufacturing.

Holder in Due Course

Refers to a party who has acquired a negotiable instrument in good faith and for value, thereby having certain protections against defenses and claims that could be asserted by prior parties.

Outstanding Debt

The total amount of borrowed money that is still owed to lenders and has not yet been repaid.

Executory Promise

An agreement between parties that has not yet been fulfilled or completed.