Generally,if the Sale of Collateral Is Insufficient to Repay a Secured

question 104

Multiple Choice

Generally,if the sale of collateral is insufficient to repay a secured loan plus interest,the creditor may bring a lawsuit against the debtor to recover a ________ judgment for the difference.

• A) default
• B) deficiency
• C) directed
• D) summary
• E) declaratory

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Definitions:

Journal Entries

The recordation of financial transactions in an accounting system.

After-tax Earnings

The net income a company generates after all taxes have been deducted from gross earnings.

Physical Reductions

Decreases in the quantity or physical state of assets, often associated with inventory or fixed assets through use, wear, and tear.

FIFO Costing

FIFO Costing, or First-In, First-Out costing, is an inventory valuation method where goods first purchased or produced are the first ones sold.