Which of the Following Terms Is Not Implied into a Mortgage

question 7

Multiple Choice

Which of the following terms is not implied into a mortgage at common law?

• A)The mortgagee will release the mortgage upon payment of all money due under the mortgage.
• B)On default by the mortgagor, the mortgagee can demand payment of the principal and interest in full.
• C)All money spent by the mortgagee in maintaining the mortgaged property represents additional charges for which the mortgagor must pay interest.
• D)The mortgagee must insure against loss or damage by fire all buildings and improvements on the property.

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Definitions:

Raw Materials

The basic substances used in production processes, which are transformed into finished goods.

Merchandise Purchases

Transactions involved in acquiring goods for the purpose of resale during the normal course of business.

Cost Of Goods

The direct costs attributable to the production of the goods sold by a company, including materials and labor but excluding indirect expenses.

Beginning Inventory

The value of a company's inventory at the start of an accounting period.