Buyers in the Ordinary Course of Business Who Purchases Goods

question 74

True/False

Buyers in the ordinary course of business who purchases goods from a merchant take the goods free from any perfected or unperfected security interest in the merchant's inventory,even if the buyer knows of the existence of the security interest.

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Definitions:

Sales

The total amount of revenue generated from goods or services sold by a company.

Costs of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and manufacturing overhead.

Inventory

A company's full collection of materials and goods, kept for the goal of being sold or used in production.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for, represented as an asset on the company's balance sheet.