With Regard to Conditional Sales and Chattel Mortgages,which of the Following

question 27

Multiple Choice

With regard to conditional sales and chattel mortgages,which of the following is false?

• A) If a conditional buyer defaults in his payments, the conditional seller can generally seize the chattel without a court order.
• B) A conditional seller can assign the conditional sale contract to a finance company without the consent of the conditional buyer.
• C) A chattel mortgagee must register the mortgage in the appropriate registration office, not to protect his claim on the chattel against the chattel mortgagor, but to protect his claim against third parties-e.g., a bona fide purchaser for value.
• D) There is no longer a distinction between a chattel mortgage and a conditional sale.
• E) These transactions are now governed by the Personal Property Security Act.

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Definitions:

Book Value

The value of an asset as recorded on the balance sheet, calculated as the cost of an asset minus accumulated depreciation.

Acid-test Ratio

Acid-test ratio is a financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets (cash, marketable securities, and current receivables) without selling any inventory.

Debt-to-equity Ratio

A ratio illustrating the proportional use of shareholder equity and debt in the acquisition of a company's assets.

Receivable Turnover

A financial metric indicating the efficiency of a company in collecting its accounts receivable or the effectiveness of its credit policy.