Grace Purchases Three Tons of Fine Merino Wool on Behalf

question 24

Multiple Choice

Grace purchases three tons of fine merino wool on behalf of Woolen Creations.Woolen Creations wants the wool to remain in the warehouse where it is being stored until it is needed.Grace makes an offer for the wool on Monday.The offer is accepted on Tuesday.The warehouser gives Woolen Creations a warehouse receipt on Wednesday.Woolen Creations picks up the wool from the warehouse three months after the sale.Title for the wool passed to Woolen creations

• A)on Monday.
• B)on Tuesday.
• C)on Wednesday.
• D)three months after the sale.

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Definitions:

Collateral Position

The assets that a borrower offers to a lender as security for the repayment of a loan, potentially forfeited in case of default.

Disbursement of Funds

The act of paying out money from a fund or account to cover expenses or investments.

Collateral Position

Collateral is property or assets that a borrower offers to a lender as security for a loan, which can be taken by the lender if the borrower fails to repay.

Stretching Payables

Paying invoices after they’re due according to the terms of sale. Also called leaning on the trade.