Identify Which of the Following Statements Is True About Secured

question 61

Multiple Choice

Identify which of the following statements is true about secured transactions in provinces having a personal property security act.

• A) This kind of transaction, which formerly was legal, is now prohibited by law in all provinces.
• B) Various kinds of secured transactions, such as conditional sales, chattel mortgages, etc., are regulated by their own distinct statutes.
• C) An assignment of an account receivable does not qualify as a security arrangement because no tangible property is involved.
• D) All kinds of security arrangements involving personal property as collateral now come under one statute.
• E) Only tangible personal property can be used as security.

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Definitions:

Interest Expense

The price paid by an entity for the privilege of using borrowed funds over a designated period.

Operating Income

Earnings generated from a company's core business operations, excluding deductions of interest and taxes.

Credit Sales

Transactions where goods are sold and payment is received at a later date, extending credit to the buyer.

Gain from Sale

The profit realized from the sale of assets or investments when the selling price exceeds the original purchase price.