Explain what is meant by "attachment" and who may seek this remedy and why?
What will be an ideal response?
Attachment is a court order permitting a local court officer, such as a sheriff, to seize a debtor's property. Under statute, a creditor who has an enforceable right of payment under law may obtain an attachment. A creditor typically seeks an attachment as a prejudgment remedy in a legal action. The attachment brings the debtor's property under the court's control until the legal action is complete. Typically, a creditor may ask the court to attach the debtor's checking and savings accounts, certificates of deposit, or even personal or real property.
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Aspen Company provides for doubtful accounts expense at the rate of 3 percent of credit sales. The following data are available for last year: Allowance for Doubtful Accounts, January 1 ..... $ 54,000 (cr) Accounts written off as uncollectible during the year ......................................... 60,000 Collection of accounts written off in prior years.. (customer credit was re-established)
........... 15,000 Credit sales, year-ended December 31 ........... 3,000,000 The allowance for doubtful accounts balance at December 31 . after adjusting entries, should be a. $45,000. b. $99,000. c. $90,000. d. $84,000.
Which of the following factors might cause problems when comparing ratios for a specific firm with industry averages?
a. Different fiscal year-ends b. Operational (elective) accounting treatment c. Different financial policies d. All of the answers are correct.
Which of the following must be recorded in order to gain priority over later security interests in
the same parcel of property? A) Mortgage B) Deed of trust C) Both a deed of trust and a mortgage D) Neither a deed of trust nor a mortgage
Which of the following is performed by enterprise application integration?
A. It duplicates the data because each application has its own database. B. It prevents data loss. C. It prevents existing applications from communicating and sharing data. D. It prevents a gradual move to ERP. E. It connects system "islands" via a new layer of software.