Metro Motors Files a Financing Statement Giving Notice to the Public

question 50

Multiple Choice

Metro Motors files a financing statement giving notice to the public that it has a secured interest in collateral belonging to Nate's Limousine Service, which is the debtor named in the statement. A uniform financing statement used in all states is​

• A) ​the UCC Financing Statement.
• B) ​the UCC Collateral Form.
• C) ​Form UCC-2.
• D) ​none of the choices.

---

Definitions:

Bonds Payable

Bonds payable are long-term liabilities that represent funds borrowed by a company from investors, to be repaid with interest at a future date.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets, indicative of financial health.

Solvency-Based Measure

An assessment of a company's ability to meet its long-term financial commitments and continue its operations into the foreseeable future.

Operating Activities

Activities that relate to the core business operations of a company, including revenue and expense transactions that affect the net income.