ACCT 340 EXAM 1 QUESTIONS AND ANSWERS
100% VERIFIED
Which of the following is NOT true regarding financing statements?
A.
Most states require financing statements covering farm equipment, farm products,
accounts, and consumer goods to be filed with the county clerk [Revised UCC 9-501].
B.
Financing statements are effective for 5 years from the date of filing [Revised UCC
9-515(a)].
C.
A continuation statement may be filed up to 6 months prior to the expiration of a
financing statement's 5-year term.
D.
They serve as constructive notice to the world that a creditor claims an interest in a
property.
E.
Financing statements can only be reviewed by approved creditors. - ANSWER Financing
statements can only be reviewed by approved creditors.
A creditor who extends credit to a consumer to purchase a consumer good under a
written security agreement obtains a(n) _____ security interest in the consumer good.
A.
,equitable
B.
incidental
C.
constructive
D.
symbolic
E.
purchase money - ANSWER purchase money
A(n) _____ lien is a security interest in property that was not in the possession of the
debtor when the security agreement was executed.
A.
non-collateralized
B.
unsecured
C.
floating
Your answer is correct.
D.
elusive
E.
,intangible - ANSWER floating
A(n) _____ judgment is a judgment of a court that permits a(n) _____ lender to recover
other property or income from a defaulting debtor if the collateral is insufficient to repay
the unpaid loan.
A.
default; unsecured
B.
deficiency; secured
Your answer is correct.
C.
executory; secured
D.
summary; non-commercial
E.
declaratory; commercial - ANSWER deficiency; secured
A _____ transaction occurs when a seller sells goods to a buyer who has obtained
financing from a third-party lender who takes a security interest in the goods sold.
A.
two-party unsecured
B.
, three-party unsecured
C.
two-party secured
D.
three-party secured
Your answer is correct.
E.
two-party mortgage - ANSWER three-party secured
A _____ transaction occurs when a seller sells goods to a buyer on credit and retains a
security interest in the goods.
A.
three-party unsecured
B.
multi-party; unsecured
C.
two-party unsecured
D.
three-party secured
E.
two-party secured - ANSWER E.
two-party secured
100% VERIFIED
Which of the following is NOT true regarding financing statements?
A.
Most states require financing statements covering farm equipment, farm products,
accounts, and consumer goods to be filed with the county clerk [Revised UCC 9-501].
B.
Financing statements are effective for 5 years from the date of filing [Revised UCC
9-515(a)].
C.
A continuation statement may be filed up to 6 months prior to the expiration of a
financing statement's 5-year term.
D.
They serve as constructive notice to the world that a creditor claims an interest in a
property.
E.
Financing statements can only be reviewed by approved creditors. - ANSWER Financing
statements can only be reviewed by approved creditors.
A creditor who extends credit to a consumer to purchase a consumer good under a
written security agreement obtains a(n) _____ security interest in the consumer good.
A.
,equitable
B.
incidental
C.
constructive
D.
symbolic
E.
purchase money - ANSWER purchase money
A(n) _____ lien is a security interest in property that was not in the possession of the
debtor when the security agreement was executed.
A.
non-collateralized
B.
unsecured
C.
floating
Your answer is correct.
D.
elusive
E.
,intangible - ANSWER floating
A(n) _____ judgment is a judgment of a court that permits a(n) _____ lender to recover
other property or income from a defaulting debtor if the collateral is insufficient to repay
the unpaid loan.
A.
default; unsecured
B.
deficiency; secured
Your answer is correct.
C.
executory; secured
D.
summary; non-commercial
E.
declaratory; commercial - ANSWER deficiency; secured
A _____ transaction occurs when a seller sells goods to a buyer who has obtained
financing from a third-party lender who takes a security interest in the goods sold.
A.
two-party unsecured
B.
, three-party unsecured
C.
two-party secured
D.
three-party secured
Your answer is correct.
E.
two-party mortgage - ANSWER three-party secured
A _____ transaction occurs when a seller sells goods to a buyer on credit and retains a
security interest in the goods.
A.
three-party unsecured
B.
multi-party; unsecured
C.
two-party unsecured
D.
three-party secured
E.
two-party secured - ANSWER E.
two-party secured
