To Be Effective Against Third Parties, a Financing Statement

question 2

Multiple Choice

To be effective against third parties, a financing statement

• A) must always be filed in a public office.
• B) need never be filed.
• C) must be filed if an automobile is involved.
• D) need not be filed for a credit sale of business equipment.

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Definitions:

Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity of the business.

Financial Data

Quantitative information about financial conditions, performance, and transactions of a business, individual, or entity.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Financial Data

Information about financial transactions, including income, expenses, assets, and liabilities, used for analysis and decision-making.