Which of the following is not a feature of a promissory note?
Correct answer: C. It is payable to the bearer
- A. It must be in writing
- B. It contains an unconditional promise to pay
- C. It is payable to the bearer
- D. It must be signed by the maker
Explanation
A promissory note contains the maker's written and signed unconditional promise to pay, but it is not ordinarily made payable to bearer. The bearer wording is therefore not a standard feature of a promissory note.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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