Keith Will Graduate from Southern State University This Year

question 53

Multiple Choice

Keith will graduate from Southern State University this year. He has accumulated $18,000 in student loans during his four years at college. An accountant would classify the loans as:

• A) assets.
• B) liabilities.
• C) owners' equity.
• D) intangibles.

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Definitions:

Perfection

In finance, the act of securing a priority interest in the collateral among creditors concerning the same collateral or property.

Mechanic Lien

A legal claim against a property by a contractor or repairman for unpaid work, securing payment for services rendered.

Perfected Security

A security interest in a collateral that is legally binding and has been properly filed or registered, affording the creditor priority over other claimants.

Fixtures

In real estate, fixtures are items of personal property that are attached or fixed to the land or building in such a way that they become part of the real property.