Here Comes Your Neighbour Max,who Wants to Ask You More

question 107

Multiple Choice

Here comes your neighbour Max,who wants to ask you more questions about buying an Apple computer for use at home under a conditional sales contract.Which one of the following statements told to him at work is true?

• A) If Max has paid two-thirds of the amount owing under the conditional sale contract, the conditional seller could never seize the computer, even if Max were in default.
• B) If Max is in default and the conditional seller seizes the computer, the relevant statute provides that it can be sold immediately with no further notice to Max.
• C) Max's rights would be much greater and his obligations fewer if he bought it under a chattel mortgage rather than a conditional sales contract.
• D) If Max were in default, the conditional seller could sell the computer and keep all the proceeds of that sale, even if they were greater than the debt and costs.
• E) In a conditional sales contract, the result of satisfying the condition is that the lien or charge will be removed from the goods used as security.

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Definitions:

Overapplied Factory Overhead

The amount of factory overhead applied in excess of the actual factory overhead costs incurred for production during a period.

Balance Sheet

An account that outlines the assets, liabilities, and equity of shareholders of a company on a particular date.

Job Order Cost Accounting Systems

An accounting system that accumulates costs individually for each job. It is used when products are made based on specific orders.

Company's Efficiency

A measure of how effectively a company uses its resources to produce outputs, often assessed through ratios such as revenue per employee or output per hour.