Generally, When May a Security Interest Be Perfected in Collateral

question 50

Multiple Choice

Generally, when may a security interest be perfected in collateral?

• A) By the secured party's filing a financing statement in the designated public office.
• B) By the secured party's taking or retaining possession of the collateral.
• C) Automatically, on the attachment of the security interest.
• D) Temporarily, for a period specified by the Code
• E) All of these, depending on the type of collateral.

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Definitions:

Summary Journal Entry

A consolidated record that summarizes multiple transactions into a single entry within the accounting records.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reduction in sales revenue.

Receivable from Factor

Funds to be received from a factor, a financial intermediary that purchases receivables from a company, providing it with immediate cash.