Angie Borrows $20,000 from Credit Line Company Using a Stand

question 63

Multiple Choice

Angie borrows $20,000 from Credit Line Company using a stand of timber as collateral. To perfect its security interest, Credit Line must file its financing statement with​

• A) ​the county clerk.
• B) ​the mayor.
• C) ​the state lumbermen's association.
• D) ​the secretary of state.

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Definitions:

Deferral

An accounting principle where revenue or expenses are recognized at a later date than when they were initially incurred.

Nominal Accounts

Accounts that are closed at the end of every accounting period, which include revenues, expenses, gains, and losses.

Real Accounts

Permanent accounts in accounting that show the ongoing financial state of a company's assets, liabilities, and shareholders' equity.

Accounting Period

A specific period of time used for financial reporting, such as a month, quarter, or year.