If the Goods in the Possession of a Bailee Are Not

question 15

Multiple Choice

If the goods in the possession of a bailee are not covered by a negotiable warehouse receipt,then the seller must:

• A)provide a receipt to the buyer.
• B)notify the bailee that it has sold the goods to the buyer and obtain the bailee's consent to hold the goods.
• C)authorize the goods to be held for the buyer.
• D)tender the goods to the buyer.

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Definitions:

Goodwill

An intangible asset that represents the excess value of a purchased company over the fair value of its identifiable net assets.

Amortize

The gradual reduction of a debt over a period of time through regular payments of principal and interest sufficient to pay off the debt by maturity.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to guide the recording and reporting of financial information.

Intangibles

Intangibles refer to non-physical assets that have value, such as patents, copyrights, trademarks, and goodwill.