Friday, March 07, 2008

CPA_MCQ_3

Under the Negotiable Instruments Article of the UCC, which of the following instruments meets the negotiability requirement of being payable on demand or at a definite time?

a. A promissory note payable one year after a person's marriage.
b. A promissory note payable June 30, year 1, whose holder can extend the time of payment until the following June 30 if the holder wishes.
c. A promissory note payable June 30, year 1, whose maturity can be extended by the maker for a reasonable time.
d. An undated promissory note payable one month after date.

Correct Ans - b

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