All but Which of the Following May Be Used as Collateral

question 15

Multiple Choice

All but which of the following may be used as collateral in a secured transaction under UCC Revised Article 9?

• A)Bank deposit accounts.
• B)Personal injury tort claims of individuals.
• C)Tort claims of a corporation.
• D)A computer program if, by purchasing a computer, the buyer of the computer acquires the right to use that embedded program.
• E)Both b and

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Definitions:

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset's economic value.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net assets, representing the value of the brand, customer relationships, and other intangible aspects.

Dividend Payable

A liability recognized on a company's balance sheet when it declares dividends to be paid to shareholders.

Pre-acquisition Entries

Accounting entries made to adjust the assets and liabilities of a company being acquired to their fair market values at the date of acquisition.