Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

1. Which of the following are rules established by UCC when determining priority among conflicting claims of creditors?

a. A secured creditor's interest is equal to unsecured creditor's interest.
b. A perfected security interest has priority over mere interest in same collateral.
c. If there is two or more perfected security interest in the same collateral, the last to perfect has priority as it is the most recent interest that has been filed.
d. All of these are correct.

2. A creditor who has repossessed collateral may select to retain it:

a. In all circumstances.
b. In all circumstances unless the secured party receives suitable notice within 21 days.
c. In all circumstances when the debtor willfully did not pay the debt.
d. In all circumstances unless the secured party gets suitable notice within 21 days or in the case of consumer goods, if more than 60 percent of the price has been paid.

3. Ajax Corporation borrowed $50,000 from National Bank, giving National a security interest in its factory equipment. Agreement stated that equipment would be security for this $50,000 loan and any future loans that National made to Ajax.  National filed a valid financing statement.  Over next several months, Ajax borrowed another $100,000 from National. No additional financing statements were filed. Ajax has not made any payments on its loans from National. Ajax defaults on these loans. National requires to foreclose on collateral. Suppose this security agreement is valid and perfected, how much of National's debt is secured?

a. None, as this was not a purchase money situation.
b. Only the first $50,000 because financing statements were not filed on last $100,000.
c. Only the first $50,000 because future advances clauses are not valid.
d. The entire $150,000 is secured.

4. Which of the given is true about distinction between secured and unsecured credit?

a. Secured debt is debt which has already been paid, and unsecured has not yet been paid.
b. Secured debt is expected to be collected, while collection of unsecured debt is doubtful.
c. Secured debt will be collected over more than 1 year, while unsecured debt is expected to be collected within 1 year.
d. Secured debt has collateral associated with it, while unsecured debt has no associated collateral.
e. Secured debt results from a judgment of the court, while unsecured debt results from the agreement of the parties.

5. When debtor fails to pay a debt, and value of collateral is less than the full amount of the debt, which of the given is generally true?

a. The creditor can obtain deficiency judgment against debtor for the amount of debt that was not satisfied from collateral.
b. The creditor should absorb the remaining loss and has no further remedy.
c. The creditor should file a bankruptcy proceeding against the debtor in order to obtain further relief.
d. The creditor should record its security interest before proceeding further.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M920404

Have any Question? 


Related Questions in Accounting Basics

Assessment cloud on-line accounting and systems

Assessment: Cloud On-line Accounting and Systems Documentation You are working as an accountant in an accounting firm. You have been approached by the owner of "Splash!" a start-up business that sells swimming accessorie ...

Mnc paper and presentationgoogle company paper and

MNC Paper and Presentation: GOOGLE COMPANY Paper and Presentation will consist of research to write a paper on an annual SEC 10-K report filed by a public multinational corporation with the U.S. Securities and Exchange C ...

Ics manufacturing company produces plastic parts for the

ICS Manufacturing Company produces plastic parts for the automotive industry. Here is their Income Statement for 2015 - ICS Manufacturing Company Income Statement for 2015 Sales Revenue $35,500,000 Cost of Goods Sold 12, ...

Exercise 1north company has completed all of its operating

Exercise 1 North Company has completed all of its operating budgets. The sales budget for the year shows 50,120 units and total sales of $2,128,200. The total unit cost of making one unit of sales is $22. Selling and adm ...

Assignmentbackgroundyou are an audit senior for burns amp

Assignment Background You are an audit senior for Burns & Allen, LLP. One of the audit partners received a call from Brenda Parker, CFO of a publicly traded client, Toys For U ("Toys"). Toys is a retailer with 25 locatio ...

Writing assignment cash and receivablesassignment

Writing Assignment: Cash and Receivables Assignment Goals: - Obtain research experience in the Accounting Standards Codification - Obtain experience using SEC filings and the SEC website - Practice writing concise accoun ...

Shown below is activity for one of the products of denver

Shown below is activity for one of the products of Denver Office Equipment: January 1 balance, 500 units @ $55 $27,500 Purchases January 10 500 units @ $60 January 20 1,000 units @ $63 Sales: January 12 800 units January ...

Palmona co establishes a 220 petty cash fund on january 1

Palmona Co. establishes a $220 petty cash fund on January 1. On January 8, the fund shows $125 in cash along with receipts for the following expenditures: postage, $41; transportation-in, $11; delivery expenses, $13; and ...

Accountingscenariothe park family consists of the

Accounting Scenario: The Park family consists of the following: • Jackie O. Park; age 40; SSN: XXX-XX-XXXX; business analyst; single; unmarried • Leslie T. Park; age 16; SSN: 000-00-0000; daughter; high-school student; l ...

How do finance and accounting play a role in ethics and

How do finance and accounting play a role in ethics and sustainable positive social change? How might you use accounting or finance to support this role that you described above?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen