Which of the following describes a negotiable instrument?

A negotiable instrument is defined as a written document that promises a specific amount of money to be paid either on demand or at a specified time, making it transferable and often used as a means of payment. The key characteristic of a negotiable instrument is its ability to be transferred legally by endorsement, which allows the original holder to pass on the rights to receive payment to another party. This transferability is a fundamental attribute that distinguishes negotiable instruments from other types of contracts or agreements.

In the context of the choices provided, the correct answer reflects this definition by emphasizing the characteristics of being a claim on cash that can be legally transferred through endorsement. This provides flexibility and liquidity in financial transactions, which is crucial for their function in commerce.

The other options, while related to financial instruments, do not capture the essence of a negotiable instrument. For example, a type of cash receipt does not necessarily imply that it can be transferred or endorsed. Similarly, a contract for future payment indicates an agreement to pay in the future but lacks the immediate transferability characteristic of a negotiable instrument. Lastly, a liability owed to creditors relates to obligations rather than the transferability of a financial claim, aligning it more with accounting concepts rather than the nature of negotiable instruments.