REG Certified Public Accountant (CPA) Practice Test

A negotiable bill of lading is specifically defined by its ability to be transferred to another party, which is what distinguishes it from a non-negotiable bill of lading. When a bill of lading is considered negotiable, it means that the goods can be delivered to a bearer (a person holding the document) or to a specifically named party. This characteristic allows the holder of the negotiable bill to sell the goods or transfer their ownership, typically by endorsement, making the document a vital component of trade and shipping.

In contrast, the other options highlight aspects that do not fit the definition of a negotiable bill of lading. For instance, a negotiable bill of lading does not require an endorsement from the seller for it to be negotiable; rather, it is inherently negotiable by its nature, allowing its value and ownership to be transferred. Additionally, no official government stamp is necessary for a negotiable bill of lading to be considered valid. Lastly, the essence of a negotiable bill of lading lies in its transferability, which directly contradicts the notion that it cannot be transferred once issued.