With Regard to Future Goods

question 52

Multiple Choice

With regard to future goods:

• A) no security interest is possible.
• B) a financing statement must be filed to create a security interest.
• C) the security interest does not attach until the buyer has rights in the goods.
• D) a security interest may be held only by a bank.

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Definitions:

Realized Gain

The profit made from the sale of an asset or investment when it is actually sold, not just on paper.

Available-for-sale Securities

Financial assets that are intended to be sold before they reach maturity or are needed to fund specific obligations.

Interest Revenue

Income earned on investments, loans, and other interest-bearing financial instruments, recorded as revenue in the income statement.

Debt Trading Securities

Financial instruments that involve debt and are actively bought and sold on markets with the aim to profit from price movements.