A Floating Lien Can Attach to Which of the Following

question 57

Multiple Choice

A floating lien can attach to which of the following?

• A) after-acquired property only
• B) sale proceeds only
• C) future advances only
• D) after-acquired property and future advances, but not sale proceeds
• E) after-acquired property, sale proceeds, and future advances

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Definitions:

Direct Materials

Raw materials that are directly incorporated into a finished product and can easily be traced to the product.

Quantity Variance

The difference between the expected and actual quantities of inputs used in the production process, affecting the cost of goods sold.

Price Variance

The difference between the actual cost of a good or service and its expected or budgeted cost.

Total Cost Variance

The difference between the actual cost incurred and the standard cost, reflecting how well costs are controlled during a production process.