Which of the Following Is True About Security Agreements and Financing

question 134

Multiple Choice

Which of the following is true about security agreements and financing statements?

• A) These are two terms for essentially the same document.
• B) Both must be filed in order to perfect a security agreement.
• C) Both must exist in order for a security interest to attach.
• D) The financing statement gives constructive notice to the world of the existence of the related security agreement.
• E) The security agreement is unenforceable until a financing statement has been filed.

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Definitions:

Equivalent Units

A concept in cost accounting used to express the amount of work done by incomplete units of production in terms of fully completed units.

Physical Units

A quantifiable measurement of products or goods that doesn't consider value or weight, used in inventory and production.

Process Cost Accounting

An accounting method used to assign production costs to products based on processes or departments, useful in mass production environments.

Materials Account

An account used in bookkeeping to track costs of raw materials during an accounting period.