Fact Pattern 31-1A (Questions A12-A14 Apply)

question 13

Multiple Choice

Fact Pattern 31-1A (Questions A12-A14 apply)
24-Hour Credit Corporation issues high-cost and high-fee mortgage products to people,including Benny,who could not easily obtain credit under other loan programs.
-Refer to Fact Pattern 31-1A.24-Hour Credit assigns Benny's loan to Consolidated Mortgage Investment Corporation.For most purposes,Consolidated

• A)acquires the status of a holder in due course (HDC).
• B)has more protection than a mortgage assignee but less than an HDC.
• C)is exempt from federal law with respect to mortgages.
• D)is subject to claims that Benny could assert against 24-Hour Credit.

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Definitions:

Information Technology

The use of computers, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and cost of goods sold based on the average cost of all units available for sale during the period.

Materials Preparation

The process involved in getting raw materials ready for production or manufacturing, including cleaning, sorting, and pre-processing steps.

Equivalent Units

A concept in cost accounting used to estimate the amount of finished units that could be obtained from a set of partially completed units.