An Interest in Personal Property or Fixtures That Secures Payment

question 45

Multiple Choice

An interest in personal property or fixtures that secures payment or performance of an obligation is called a:

• A) guaranty holding.
• B) security interest.
• C) guaranty interest.
• D) good-faith guaranty.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Current Assets

Resources a business plans to change into cash, dispose of, or use up within either a year or its operating cycle, depending on which period extends further.

Current Liabilities

Financial obligations of a business that are due and payable within one year.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including loans, accounts payable, and mortgage obligations.