What is an endorsement? What are the different types of endorsements?
What will be an ideal response?
The act of a payee, drawee, accommodation party, or holder of a negotiable instrument in signing the back of the instrument, with or without qualifying words, to transfer rights in the instrument to another is known as endorsement. An endorsement is required to negotiate a bill or note that is in the form of order paper, and it may optionally be added to bearer paper. Endorsements are signatures, with or without additional statements that are commonly written on the back of the instrument. There are four basic kinds: (1) special endorsements, (2) blank endorsements, (3) qualified endorsements, and (4) restrictive endorsements.
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If Mussel Company has working capital of $540,000 and a current ratio of 3 to 1, the amount of current assets is:
a. $540,000 b. $810,000 c. $270,000 d. $405,000
The Internal Revenue Service is responsible for issuing accounting standards for state and local governments
Indicate whether the statement is true or false
The following information is available from JB Corporation's accounting records for the year ended December 31, Year 4: Cash received from customers $600,000 Dividends received from marketable securities 80,000 Cash paid for purchase of supplies 300,000 Income taxes paid 50,000 Cash dividends paid to shareholders 30,000 Net cash flow from operating activities for Year 4 totaled
a. $200,000 b. $250,000 c. $300,000 d. $330,000 e. $220,000
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Indicate whether the statement is true or false