Which of the Following Statements Is False

question 78

Multiple Choice

Which of the following statements is false?

• A) If the proceeds from the sale of the collateral do not pay the underlying debt,the creditor may obtain a deficiency judgment against the debtor.
• B) If the proceeds from the sale of the collateral are more than the underlying debt and expenses,the debtor has a right to the excess.
• C) Generally,the debtor has a right of redemption as to the collateral.
• D) In all cases,the creditor has the right to retain the collateral.

---

Definitions:

Useful Life

The estimated duration of time an asset is expected to be economically useful to an entity.

Simple Rate

A basic interest rate or return percentage applied to an investment or loan without compounding over a specific period.

Profitability Index

A financial tool used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specific rate of return.