2011 Regulation 6 Text Update - This first page gives a...

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This first page gives a listing of the corrected lecture text pages that follow. Print these corrected pages and insert in the lecture text. REGULATION Date Added Lecture Page Number Description 03/14/2011 R-6 10 Reworded sentence 03/14/2011 R-6 65 Text change (simulation) 03/14/2011 R-6 66 Text change (simulation) 03/14/2011 R-6 67 Text change (simulation)
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Regulation 6 Becker Professional Education | CPA Exam Review R6- 10 © 2010 DeVry/Becker Educational Development Corp. All rights reserved. 1. Order – Payable to the Order of a Specified Party Order paper must state that it is payable to the order of an identified person (e.g., "Pay to the order of John Smith") or payable to an identified person or order (e.g., "Pay John Smith or order"). If a note or draft simply says "pay John Smith" without one of the "magic words" above, it will not be negotiable , unless the instrument is a check. 2. Bearer – Payable to Anyone Who Possesses It Bearer paper is payable to anyone who has possession of it. An instrument is payable to bearer if it is payable: "to bearer," "to the order of bearer," to a named person " or bearer" (e.g., "pay John Smith or bearer"), to a named person " and bearer" or to "cash," or to the order of "cash." Note: If an instrument is payable to bearer, it need not include the word "order" (i.e., an instrument that says "pay bearer" can be negotiable; it need not say "pay to the order of bearer"). EXAMPLE No. 125 DATE Pay to the order of $ The bearer of this instrument One Thousand and 00/100 - - - - - - - - - - - - - - - - - - - - - dollars memo By /s/ Murray Maker 1,000.00 Phil Payee March 1, 2011 The above instrument is negotiable because it contains the "magic words" of negotiability ("to bearer"). 3.
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This note was uploaded on 09/25/2011 for the course ACCOUNTING AC591 taught by Professor W during the Spring '11 term at Keller Graduate School of Management.

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2011 Regulation 6 Text Update - This first page gives a...

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