An instrument is negotiable if it satisfies six standards. Which of the following is a standard of negotiability?
A. The instrument can be oral provided there is proof beyond a reasonable doubt.
B. The instrument must be signed by the payee.
C. The instrument must be conditional.
D. The instrument must state a definite sum of money.
Answer: D
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All of the following are included in the acquisition cost of property, plant, and equipment except:
a. transportation costs b. taxes on the purchase c. installation costs d. maintenance costs
The equation that describes the relationship between the balance sheet and the income statement through the Retained Earnings account is as follows:
a. Retained Earnings (beginning) - Net Income = Retained Earnings (ending) b. Retained Earnings (beginning) + Net Income + Dividends = Retained Earnings (ending) c. Retained Earnings (beginning) - Net Income - Dividends = Retained Earnings (ending) d. Retained Earnings (beginning) - Net Income + Dividends = Retained Earnings (ending) e. Retained Earnings (beginning) + Net Income - Dividends = Retained Earnings (ending)
American law is not dynamic; rather, its precepts are "written in stone."
Indicate whether the statement is true or false
Martha started a flower shop as a sole proprietor. After one year, she was forced to close the
shop because business was so bad. At that time, the business assets totaled $50,000, but the business liabilities totaled $125,000. Which of the following statements is true? A) Martha's business creditors can collect only the $50,000 now, but if Martha ever goes into business again, they can get the assets of the new business. B) Martha's business creditors can collect only the $50,000 of business assets. C) Once Martha terminates the sole proprietorship, the business creditors cannot get even the $50,000. D) Martha is personally liable for the additional $75,000.