14 in response to an order for flour from Good Eating LLC, Harvest Mill creates a draft ordering Good to pay Harvest for the flour within sixty days and sends it with the delivery to Good. On receipt, the buyer signs the draft. On this instrument, Harvest is   a.  neither the drawer nor the payee.     b.  only the drawer.     c.  only the payee.     d.  both the drawer and the pay   A certificate of deposit (CD) is issued when Lo-Risk Invest LLC deposits funds with Money Bank on the bank’s promise to repay the funds, with interest, on a certain date. Lo-Risk cannot withdraw the funds before the date of maturity because   a.  a CD is not a three-party instrument.     b.  the bank is both the issuer of the instrument and the drawee.     c.  a CD cannot be sold or negotiated to a third party before maturity.     d.  a CD is a time deposit   Donut Shop signs a promissory note for $50,000 in favor of Enterprise Lending Inc. The note includes an acceleration clause. This note is   a.  nonnegotiable, because the maker can move up the payment date.     b.  negotiable.     c.  nonnegotiable, because payment can be demanded early if a specified event occurs.     d.  nonnegotiable, because the maturity may be extended into the future

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

14 in response to an order for flour from Good Eating LLC, Harvest Mill creates a draft ordering Good to pay Harvest for the flour within sixty days and sends it with the delivery to Good. On receipt, the buyer signs the draft. On this instrument, Harvest is

  a. 

neither the drawer nor the payee.

 
  b. 

only the drawer.

 
  c. 

only the payee.

 
  d. 

both the drawer and the pay

 

A certificate of deposit (CD) is issued when Lo-Risk Invest LLC deposits funds with Money Bank on the bank’s promise to repay the funds, with interest, on a certain date. Lo-Risk cannot withdraw the funds before the date of maturity because

  a. 

a CD is not a three-party instrument.

 
  b. 

the bank is both the issuer of the instrument and the drawee.

 
  c. 

a CD cannot be sold or negotiated to a third party before maturity.

 
  d. 

a CD is a time deposit

 

Donut Shop signs a promissory note for $50,000 in favor of Enterprise Lending Inc. The note includes an acceleration clause. This note is

  a. 

nonnegotiable, because the maker can move up the payment date.

 
  b. 

negotiable.

 
  c. 

nonnegotiable, because payment can be demanded early if a specified event occurs.

 
  d. 

nonnegotiable, because the maturity may be extended into the future

 

 

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Impairment of Assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education