Which of the Following Is Not True About a Consumer

question 34

Multiple Choice

Which of the following is not true about a consumer lease under UCC Article 2A?

• A) The lessor must be regularly engaged in the business of leasing or selling goods.
• B) The lessee cannot be an organization.
• C) There is no dollar limit on the amount of a consumer lease under Article 2A.
• D) Consumer protection provisions are contained in Article 2A, and these may not be varied by the parties' agreement.

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Definitions:

Interest Expense

The amount an entity pays over time for the use of borrowed funds.

General Journal Entry

A general journal entry is a record of financial transactions in the accounting records of a business.

Notes Payable

This refers to a written promise to pay a certain amount of money, usually including interest, by a specific date, and is recognized as a liability on a company's balance sheet.

Effective Interest Method

An accounting practice used to allocate loan or bond interest expense over the life of the loan or bond based on the loan's amortized cost.