Ch14-TB-BLTE-8e

Ch14-TB-BLTE-8e - Chapter14 NegotiableInstruments...

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Chapter 14 Negotiable Instruments TRUE/FALSE QUESTIONS 1. A negotiable instrument serves as a substitute for cash. ANSWER: T PAGE: 415 TYPE: + MISC: AACSB Analytic Skill Level: AICPA Critical  Thinking 2. To be negotiable, an instrument must indicate an account to be charged. ANSWER: F PAGE: 416 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 3. A notation on an instrument that it is “negotiable” is sufficient to render it  negotiable. ANSWER: F PAGE: 416 TYPE: N MISC: AACSB Reflective Skill Level: AICPA Legal 4. To be negotiable, an instrument must be in writing. ANSWER: T PAGE: 416 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 207
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208 ANSWERS MANUAL TO ACCOMPANY BUSINESS LAW TODAY: THE ESSENTIALS 5. To be negotiable, an instrument must be written on high-quality, letter- or  legal-size paper. ANSWER: F PAGE: 416 TYPE: N MISC: AACSB Reflective Skill Level: AICPA Legal 6. Rubber stamp signatures are  not  legally binding signatures. ANSWER: F PAGE: 416 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 7. The location of a signature on an instrument is important. ANSWER: F PAGE: 416 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 8. To be negotiable, an instrument must include an unconditional promise to  pay. ANSWER: T PAGE: 416 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 9. A promissory note is negotiable even if it does not state that it is payable on  demand or at a definite time. ANSWER: F PAGE: 416 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 10. An instrument including a clause that permits the date of maturity to be  extended by the maker for a definite period” is negotiable. ANSWER: T PAGE: 416 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal
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CHAPTER 14: NEGOTIABLE INSTRUMENTS 209 11. A check is a draft. ANSWER: T PAGE: 418 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 12. A promissory note cannot be a negotiable instrument. ANSWER: F PAGE: 419 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 13. An instrument “payable to bearer” is not negotiable. ANSWER: F PAGE: 422 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 14. An instrument “payable to cash” is not negotiable. ANSWER: F PAGE: 422 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 15. An order instrument is negotiated by delivery alone. ANSWER: F PAGE: 422 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal
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210 ANSWERS MANUAL TO ACCOMPANY BUSINESS LAW TODAY: THE ESSENTIALS 16. An instrument payable to the order of a specified person is  not  negotiable. ANSWER:
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This note was uploaded on 11/03/2009 for the course ARE 18 taught by Professor Maxey during the Spring '08 term at UC Davis.

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Ch14-TB-BLTE-8e - Chapter14 NegotiableInstruments...

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