If, after collateral is repossessed and sold, there is money left over (a surplus), that money belongs to the creditor to compensatethem for the costs of repossession.Select one:O TrueO FalseA Purchase Money Security Interest in equipment has priority over an earlier creditor with a security interest in after-acquiredproperty, as long as the PMSI perfects within 20 days after the debtor takes possession. (Example 30.14 on pg. 569.)Select one:OTrueO FalseA Finance Statement, properly filed, lasts forever and applies to wherever the collateral is moved, even if moved to another state.Select one:O TrueO Fals

People raised funds from the financial institution and for that loan to be secured, financial…

Answered: If, after collateral is repossessed and…

If, after collateral is repossessed and sold, there is money left over (a surplus), that money belongs to the creditor to compensate them for the costs of repossession. Select one: O True O False

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 81.2C

See similar textbooks

Similar questions

When a customer is delinquent on paying a notes receivable, your company has the option to continue to attempt collection or sell the debt to a collection agency. Research the benefits and challenges with each of these options and in a short essay, answer the following questions. A. What are the benefits and challenges of continuing to attempt collection yourself? B. What are the benefits and challenges of selling debt to a collection agency? C. If you had a dishonored notes receivable, which option would you select and why? D. Would you weight certain benefits or challenges differently when making your selection? How?
Apply derecognition criteria of IFRS 9 and U.S. GAAP to Company B’s situation below: Company B sells a portfolio of 100 short-term receivables to a bank for cash by guaranteeing to buy back first 20 defaulted receivables at the amount due from the debtors. The historical default rates on such receivables are up to 10%. The customers are notified of the sale and pay directly to the bank. The bank may subsequently sell or pledge these receivables. Under IFRS, should Company B derecognize this portfolio of short-term receivables? Why? Under U.S. GAAP, should Company B derecognize this portfolio of short-term receivables? Why?
Which of the following is true of an unsecured loan?A. They are exclusively for cars, houses, and other large purchasesB. Collateral could be collected by the lender if the debt is not paidC. They never have any interest added onto themD. Items of value that the borrowers owns are not at risk of repossession
Which of the following statements correctly describes aspects of simple interest as discussed in lectures? Group of answer choices A) With simple interest, the future value of any cash flow is simply its current value discounted back at a rate of r% per period for n periods. B) None of the other statements are correct C) A loan that has been created that pays simple interest, will involve interest payments that are calculated on the basis of both the principal amount borrowed as well as any interest that has accumulated to date. D) By convention, simple interest is the main method used for the pricing of long-term bonds. E) More than one of the other statements are correct
A company that uses a bill facility to provide finance for a period of two years: A. is exposed to interest-rate risk B. will not be required to make any payment until the end of the facility. C. will issue bank bills that mature in two years' time. D. will initially receive the bills' face value. E. all of these.
An automatically perfected security interest in consumer goods when a merchant or lender offers financing to a borrower to purchase goods is called a(n) Multiple Choice Purchase-money security interest Perfection by operation of law UCC-2 perfecting statement Floating lien Destin has missed several payments on his loan from Willshire Bank. While Whillshire Bank has attempted to work with Destin to pay according to the terms of the loan, they have had no success. Therefore, which of the options below is available? Multiple Choice Whillshire Bank can force Destin into bankruptcy proceedings. Whillshire Bank can file a criminal complaint. Whillshire Bank can declare the loan in default and institute a mortgage foreclosure. Willshire Bank can file a complaint to have Destin evicted from his house. Any assumption that environmental laws are not pertinent to a particular business’s operation may be costly in terms of __________ and may result in missed…
Which of the following statement is true of amortization? The computation of loan amortization is wholly based on the computation of simple interest. Amortization solely refers to the total value to be paid by the borrower at the end of maturity. The amortization schedule represents only the interest portion of the loan. The amortization schedule provides principal, interest, and unpaid principal balance for each month. In a typical loan amortization schedule: The amount of money paid towards reducing the loan balance decreases over time. The amount of interest paid each period does not remain constant. The amount of each payment does not remain constant. The amount of interest paid each period increases over time.
Which of the following is not a way in which banks lend short-term unsecured loans? a. Through a guaranteed credit line that has a commitment fee for any unused amount for the year b. Through credits cards lines with a certain credit limit c. By sending the amount earned from trust and investment products offered by the bank d. By lending a single date maturity loan to a debtor
When a note payable is exchanged for property, the stated interest rate is presumed to be fair when A. The stated interest rate is equal to the market rate.B. no interest rate is stated C. the stated rate is unreasonable.D. the face amount of the note is materially different from the cash sales price for similar property.
On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%. For step 1, why is it worked out 1/1.1 and answer divided by 1.1 to get 0.826446? Can you explain it to me step by step please. It is PV at 10% for end of year 2. I am having trouble understanding the process. Can you please explain it to me?
2.-When deciding to accept a cash discount from a supplier, on what day is it advisable to take the financing? A) On the last day of the discount period, to see if they are able to meet the discount. B) On the first day of the discount period, so why wait? C) On any day of the discount period D) In the middle of the discount period, so there is no risk.
Ways that a lender may respond to a defaulted loan without resorting to foreclosure include all of the following except Multiple Choice defer or forgive some of the past-due payments. accept a deed in lieu of foreclosure. allow short sale to a third party. accelerate the debt. offer credit counselina.