Proceeds on issuance and repayment of the principal on short-term notes payable are generally reported as financing activities on the statement of cash flows

Which of the following is necessary in order to have a security interest attach?

A. The debtor must have rights in the collateral. B. The creditor must take possession of the collateral. C. There must be a proper filing. D. The debtor must sign a security agreement which describes the collateral.

Lessor A leases to Lessee B who legally subleases to Sublessee C. Which of the following is correct?

a. Lessor A looks to Lessee B for payment b. Lessor A looks to Sublessee C for payment c. Lessee B does not have a contract with Sublessee C d. There is only one contract in this transaction