Which of the Following Statements Is True of an Artisan's

question 21

Multiple Choice

Which of the following statements is true of an artisan's lien?

• A) It is ineffective against other creditors unless a proper financing statement has been filed.
• B) It may be given priority even over perfected security interests in collateral if the artisan has possession of the goods.
• C) It is invalid if the artisan did not inform the debtor that he intended to claim a lien before beginning the work.
• D) It gives the retailer prevalence over someone who buys the collateral from the debtor if the buyer gives value for goods.

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The cost incurred by a business for small items or materials that are used during the operation of the business.

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to update the balances of certain accounts.

Inventory

The cumulative quantity of products and materials a business possesses for the aim of selling or manufacturing.