A person who transfers a negotiable instrument to another for consideration warrants all but which of the following? Multiple Choice That the instrument has not been altered. That he or she is unaware of insolvency proceedings against the maker, acceptor, or drawer of the instrument.

A person who transfers a negotiable instrument to another for consideration warrants all but which of the following? Multiple Choice That the instrument has not been altered. That he or she is unaware of insolvency proceedings against the maker, acceptor, or drawer of the instrument.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

A person who transfers a negotiable instrument to another for consideration warrants all but which of the following?
Multiple Choice
235
42,678
That the instrument has not been altered.
That he or she is unaware of insolvency proceedings against the maker, acceptor, or drawer of the instrument.
That the instrument is not subject to be garnished.
That the signatures on the instrument are authentic and authorized.
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