To Create an Enforceable Security Interest Between Finance Corporation and Global

question 40

Multiple Choice

To create an enforceable security interest between Finance Corporation and Global Trade Inc. with a written security agreement, the agreement must contain a description of

• A) the debtor.
• B) the creditor.
• C) all of the choices.
• D) the collateral.

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Definitions:

Accounting System

A methodical procedure of accurately and timely recording and organizing financial transactions and information.

General Journal

A primary accounting record used for recording all types of transactions and events, ensuring every financial activity is documented.

Special Journal

A financial journal designed for recording a specific type of transaction in a more efficient manner.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash transaction occurs.