Chris Convinces Dion,who Does Not Understand English,to Sign a $1,000

question 47

Multiple Choice

Chris convinces Dion,who does not understand English,to sign a $1,000 note that Dion believes is an application for a credit card.Chris negotiates the note to EverLend Finance Company.Dion

• A)can avoid payment on the note even if EverLend is an HDC.
• B)can avoid payment on the note only if EverLend is a holder.
• C)must pay EverLend the amount that it paid for the note.
• D)must pay the note in full.

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Definitions:

Direct Method

A technique used in cash flow statements to show actual cash inflows and outflows from operating activities, as opposed to the indirect method.

Accounts Receivable

The funds that a company's customers have yet to pay for products or services they have received but have not settled the bill for.

Sales Revenue

Income received from selling goods and services over a period of time.

Operating Activities

Encompasses the primary revenue-generating activities of an entity, including production, sales, and delivery of the company's products and services.