Under the Code, Collateral Is Classified According To

question 75

Multiple Choice

Under the Code, collateral is classified according to:

• A) its nature and use.
• B) the fundamental rights of the secured party.
• C) the fundamental rights of the debtor.
• D) None of these.

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Definitions:

General Journal

A comprehensive journal that records the initial data for all different types of financial transactions.

Ledger

An accounting book or computer file used for recording and totaling economic transactions measured in terms of a monetary unit, by account.

Posting

The process of recording amounts as debits or credits in the accounts of a company's general ledger.

Debt Ratio

A ratio indicating a company's level of indebtedness by dividing its total liabilities by its total assets.