With regard to a prior perfected security interest in goods for which a financing statement has been filed, which of the following parties is most likely to have a superior interest in the same collateral?
A. A buyer in the ordinary course of business who purchased the goods from a merchant.
B. A subsequent buyer of consumer goods who purchased the goods from another consumer.
C. The trustee in bankruptcy of the debtor.
D. Lien creditors of the debtor.
A. A buyer in the ordinary course of business who purchased the goods from a merchant.
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One of the main objectives of performing analytical review procedures during the planning phase of the audit is to identify:
A) Transactions that have not been properly authorized. B) Illegal acts undetected as a result of poor internal controls. C) Inefficient operations. D) Unusual changes that may signal possible account misstatements.
A container of ball-bearings valued at $25,000, currently located in Houston, TX, needs to be delivered to the Morton, IL, plant. The standard shipment method takes two days
However, for an additional charge of $500, the container can be sent overnight to arrive one day later. The annual holding cost rate for this type of item has been estimated at 28%. Which option is more economical?