What features should be present in a bill so that it meets promissory requirements?
What will be an ideal response?
To be negotiable, a bill or note must (1) be in the proper form and (2) contain a promise by the maker or drawer to make payment.
To meet the promissory requirements, a bill or note must do the following:
1, State an unconditional promise or order to pay.
2, State a definite sum of money or a monetary unit of account.
3, Be payable on demand or at a definite time.
4, Be signed by the maker or drawer.
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Bespoke, Inc offers warranties on all their bikes
They estimate warranty expense at 3.5% of sales. At the beginning of 2017, the Estimated Warranty Payable account had a credit balance of $1,900. During the year, Bespoke had $296,000 in sales and had to pay out $5,900 in warranty payments. At the end of the year, what is the closing balance in the Estimated Warranty Payable accounts? A) $6,360 B) $7,800 C) $8,460 D) $10,360
A debt contract is said to be incentive compatible if
A) the borrower's net worth reduces the probability of moral hazard. B) restrictive covenants limit the type of activities that can be undertaken by the borrower. C) both A and B of the above occur. D) neither A nor B of the above occur.
____________________ estimators do not have the capacity to reflect the effects of larger sample sizes
Fill in the blank(s) with correct word
Accounting information processes are structured to eliminate the need for professional judgment.
Answer the following statement true (T) or false (F)