When a Security Interest Is Taken on Personal Property in a PPSA

question 49

True/False

When a security interest is taken on personal property in a PPSA jurisdiction, the borrower temporarily transfers title to lender.

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Definitions:

FIFO

First-In, First-Out, an inventory valuation method where goods purchased first are sold first.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal.

Lower of Cost

An inventory valuation method requiring inventory to be recorded at the lower of its historical cost or current market value.