Which of the Following Instruments Is Negotiable

question 9

Multiple Choice

Which of the following instruments is negotiable?

• A) A note that states, "I promise to pay Vlad $800 if he repairs my car"
• B) An instrument that provides, "Payment is subject to the terms of a contract dated November 20, 2009"
• C) A note that contains the statement, "This note is secured by a mortgage dated July 01, 2009"
• D) An instrument that reads, "I promise to pay to the order of Collin Corp. $550 sixty days after the delivery of my new refrigerator"

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Definitions:

Perpetual Inventory System

An inventory management method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Average Unit Cost

A costing method that calculates the cost per unit by dividing the total cost by the total number of units available for sale.

Perpetual Inventory System

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computer systems.

Cost of Goods Sold

Costs directly incurred from the production of goods a company offers for sale, including labor and material costs.