In Which of the Following Cases Will Perfection by Attachment

question 3

Multiple Choice

In which of the following cases will perfection by attachment not be effective?

• A) The goods were sold on conditional sales contract to the consumer.
• B) The creditor has lent money to enable a consumer to buy goods.
• C) The consumer good is a motor vehicle.
• D) The goods were sold on a time-payment plan to the consumer.

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Definitions:

Fair Value

The amount one would obtain from the sale of an asset or the cost incurred to settle a liability in a smooth transaction involving market players on the date of valuation.

Gross Margin

The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage.

Unrealized Profits

Profits that have been generated on paper through an investment but have not yet been realized through a sale.

Cost Method

An accounting method used to value an investment, where the investment is recorded at its acquisition cost without reflecting changes in market value.