Which of the Following Statements Is True Regarding a Secured

question 42

Multiple Choice

Which of the following statements is true regarding a secured creditor's disposition of the collateral after the debtor's default?

• A)The debtor cannot redeem the collateral after his default.
• B)The collateral must be disposed of by private sale.
• C)The creditor may opt not to repossess the collateral and instead sue the debtor on his underlying obligation.
• D)If the proceeds realized from the sale of the collateral exceed the various expenses that must be satisfied from those proceeds,the surplus goes to the creditor.

---

Definitions:

Gross Margin

Gross margin is the difference between revenue and the cost of goods sold, divided by revenue, expressed as a percentage. It measures how much a company earns taking into consideration the costs that it incurs for producing its products or services.

Variable Costing

An accounting method that includes only variable costs—costs that change with production levels—in the calculation of cost of goods sold and excludes fixed costs.

Net Operating Income

The total earnings from a company's operations after deducting operating expenses but before interest and taxes.

Net Operating Income

The profit a company makes after deducting operating expenses from gross profit, not including income and expenses from investments and interest.