First statement. The drawer’s liability is secondary. Second statement. The instrument becomes non-negotiable once the instrument is negotiated through a conditional endorsement..First statement is correct while the second statement is wrong.First statement is wrong while the second statement is correct.Both statements are correct.Both statements are wrong. First statement.A bearer instrument on its origin is converted into an order instrument if it is negotiated through a special endorsement. Second statement.The maker liability is primary.First statement is correct while the second statement is wrong.First statement is wrong while the second statement is correct.Both statements are correct.Both statements are wrong.First statement.The endorser warrant that the instrument is genuine and in all respect what it purports to be.Second statement. A person who negotiate a bearer instrument warrant that he has a good title to it.First statement is correct while the second statement is wrong.First statement is wrong while the second statement is correct.Both statements are correct.Both statements are wrong.

Financial Instruments: A financial instrument is defined as a contract between individuals/parties…

Answered: First statement. The drawer’s liability…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

First statement. The drawer’s liability is secondary. Second statement. The instrument becomes non-negotiable once the instrument is negotiated through a conditional endorsement..

First statement is correct while the second statement is wrong.
First statement is wrong while the second statement is correct.
Both statements are correct.
Both statements are wrong.

First statement.A bearer instrument on its origin is converted into an order instrument if it is negotiated through a special endorsement. Second statement.The maker liability is primary.

First statement is correct while the second statement is wrong.
First statement is wrong while the second statement is correct.
Both statements are correct.
Both statements are wrong.

First statement.The endorser warrant that the instrument is genuine and in all respect what it purports to be.Second statement. A person who negotiate a bearer instrument warrant that he has a good title to it.