Students struggle with the subject of secured transactions under the Uniform Commercial Code. In this article, the author presents a method that uses balance-sheet information to help students visualize the difference between secured and unsecured creditors. The balance sheet is also used in the Uniform Commercial Code process, in which one must classify the collateral to know the procedural steps to follow to become a secured creditor. The balance-sheet approach helps students identify inventories, real property (land), intangible assets, accounts receivable, and so forth. The students use acronyms to organize the steps necessary for becoming a secured creditor. The acronym CAPP helps students understand that one must classify the collateral, attach the security interest, perfect it, and obtain priority. (Contains 2 tables and 4 figures.)