Perfection ________ Is a Situation Where the Creditor Does Not

question 38

Multiple Choice

Perfection ________ is a situation where the creditor does not have to file a financing statement or take possession of the goods to perfect a security interest.

• A) by possession of collateral
• B) by attachment
• C) by claim
• D) without statement

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Definitions:

Year of Sale

The specific calendar year in which a sale transaction of goods, services, or assets is completed.

Credit Terms

The conditions under which credit will be extended to a customer, including payment deadlines and discounts for early payment.

Invoice Price

The price listed on an invoice for purchased goods or services, before any discounts, allowances, or additional charges are applied.

Net Realizable Value

Net Realizable Value is the estimated selling price of goods minus the estimated cost of completion and sales expenses.