City Bank's Financing Statement in Collateral Owned by Delta Bottled

question 45

Multiple Choice

City Bank's financing statement in collateral owned by Delta Bottled Waters Corporation will expire in less than a year.Filed timely,a continuation statement could extend the effectiveness of the financing statement for 

• A) ​one year. 
• B) ​two years. 
• C) ​five years. 
• D) ​ten years.

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Definitions:

AASB 9

An Australian Accounting Standard Board regulation that outlines the requirements for the classification, measurement, and impairment of financial instruments.

Financial Liabilities

Obligations that require a company to pay money or deliver financial assets to another entity in the future.

Financial Guarantees Contracts

Contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due.

Derivatives

Financial securities whose value is derived from the value of an underlying asset or benchmark.