Attachment Takes Place When

question 12

Multiple Choice

Attachment takes place when

• A) after-acquired assets are secured.
• B) a debtor receives some value under the contract.
• C) a purchase money security interest arises.
• D) notice of a security arrangement is given.
• E) a contract is executed.

---

Definitions:

Carrying Value

The book value of an asset or liability on a company's balance sheet, representing its value according to accounting standards.

Unrealized Gain

A profit that results from an investment that has increased in value but has not yet been sold for cash.

Acquisition Differential

The gap between what a company is bought for and the true worth of its recognizable assets and debts.

Goodwill Impairment

Goodwill impairment occurs when the market value of a company's goodwill asset falls below its book value, indicating that the asset is overvalued on the balance sheet.